The stocks are largely from sectors such as chemicals, finance and cement, which struggled earlier but the worse seems to be behind them.
While the capital spending is being maintained at 3.1 per cent of the GDP, a little more would have boosted economic growth even further, suggests Rajiv Memani.
IIP growth has been revised upwards to 2.5 per cent in December, from the provisional estimates of 1.8 per cent.
Overall, volume growth is likely to be in the range of 3-8 per cent for two-wheelers and 5-7 per cent for passenger vehicles owing to healthy demand from urban and rural areas and pending order books.
Industrial output grows at meagre rate of one per cent in 2012-13 compared to 2.9 per cent in the previous fiscal.
Wholesale price inflation rose to a 4-month high of 2.36 per cent in October as prices of food items, especially vegetables, and manufactured goods turned dearer, as per the government data released on Thursday. The wholesale price index (WPI) based inflation was 1.84 per cent in September 2024. It was (-) 0.26 per cent in October, last year.
For the first eight months, industrial output, as measured by the index of industrial production, rose by 3.9 per cent against 9.2 per cent in the corresponding period of 2007-08.
If the index is unable to sustain above 24,500 levels, technically it can then slip to its 200-DMA placed at 23,365 levels.
After contracting for the first time in 15 years in October, industrial production again crashed by two per cent in December against a growth rate of a whopping 8 per cent a year ago despite a stimulus package announced by the government to boost sagging demand.
Manufacturing, which has around 80 per cent weight in the Index of Industrial Production --a measure of factory output in the country -- rose by 17.9 per cent during the month against one per cent a year ago.
From the 30-share pack, Hindustan Unilever, Tata Motors, Axis Bank, Nestle India, Asian Paints, ITC, Reliance Industries, Mahindra & Mahindra, IndusInd Bank and State Bank of India were among the laggards. Larsen & Toubro, Tata Steel, JSW Steel, HDFC Bank, Adani Ports, Kotak Mahindra Bank, Bharti Airtel and PowerGrid were among the gainers.
The Index of Industrial Production (IIP) grew by 10.9 per cent in January this year as against 8.5 per cent in the corresponding month last year.
The industry performed badly during the last month of 2007-08, with growth decelerating to 3 per cent from 14.8 per cent in the year-ago period, a development that could be a major cause for concern for the government that is now focusing on fighting high inflation.
During April-August, the eight sectors grew by 4.4 per cent, against 4.2 per cent in the year-ago period.
The IIP data showed a significant slowdown in the manufacturing sector, which grew at 4.2 per cent in July 2019 as compared to 7 per cent a year ago.
'There's a misconception that all Rs 1 lakh crore will be spent immediately, leading to higher consumption of FMCG goods, travel, and vehicle purchases.' 'While some of this money will go toward consumption, not all of it will.' 'The impact depends on where people deploy their savings.'
During April-September, the eight sectors grew by 4 per cent, against 5 per cent in the year-ago period.
Continuing its dismal performance, industrial growth fell further to 1.9 per cent in September, mainly due to poor output from the manufacturing sector.
Inflation trajectory does not match the slump in demand, prolonged pause on rates likely.
India's annual industrial output growth slowed to 4.2 per cent in July compared with an upwardly revised 4.4 per cent growth a month ago, government data showed on Friday.
India's industrial output grew 9.7 per cent in August compared to 7.6 per cent in the same month last fiscal.\n\n
Manufacturing, which constitutes around 80 per cent of the index of industrial production, grew 19.4 per cent in April against 0.4 per cent a year ago, according to official data released on Friday.
According to the data released by the government, the capital goods segment in the overall industrial output rose by 63 per cent in July and pushed up the Index of Industrial Production (IIP) by 13.8 per cent.
The country's industrial production has risen by 11.4 per cent in September 2006 over the year-ago month, powered by double-digit growth in manufacturing and electricity sectors.\n
Despite high headline numbers, the output of one-third of the segments in the manufacturing sector in August stood below even that in the same month in 2011-12, when the new index of industrial production (IIP) series started. This is despite the fact that manufacturing grew 9.3 per cent in the month, driving up IIP growth to a 14-month high of 10.3 per cent. Part of it is due to the devastation of these product categories by lockdowns induced by Covid waves and subdued export conditions, while part of it needs to be assessed further.
The wholesale price inflation rose to 1.84 per cent in September as food items, especially vegetables, turned costlier, as per the government data released on Monday. The wholesale price index (WPI)-based inflation was 1.31 per cent in August. It was (-)0.07 per cent in September last year.
India's industrial production rose 4.9 per cent year-on-year in April, the first month of the current financial year, the official Central Statistical Organisation said on Thursday.
As per use-based classification, primary good registered a growth of 7.4 per cent, intermediate goods 22.4 per cent, and infrastructure/construction goods 0.1 per cent in February 2020 as against the same period a year ago.
Industrial output fell 3.2 per cent in November.
The growth of eight key infrastructure sectors rose to a 14-month high of 12.1 per cent in August 2023 against 4.2 per cent a year ago, mainly due to expansion in production of coal, crude oil, and natural gas, according to the official data released on Friday. The expansion in August is the highest since June 2022, when it was 13.2 per cent. The production of refinery products, steel, cement and electricity also grew in August, the data showed.
The growth is particularly remarkable because it comes at levels higher than during the pre-Covid times, notes Mahesh Vyas.
India's industry sector grew by 6.7 per cent in July 2005 compared to 8.5 per cent in the same month a year ago.
The country's industrial output growth trickled to 6.2 per cent in October, the lowest this fiscal, on account of a slowdown in manufacturing production.
Industrial production grows at 2.1 per cent in March.
Inflation, remained in negative territory for the 7th month in May
The core infrastructure industries had expanded by 5.2 per cent in the previous month.
Buoyant manufacturing sector has pushed up industrial growth to 13.6 per cent in the first month of the current financial year against 9.9 per cent in April.
The growth of eight key infrastructure sectors slowed down to a 4-month low of 8.1 per cent in September 2023 against 8.3 per cent a year ago, according to the official data released on Tuesday. The growth rate in the output of refinery products, fertiliser, cement and electricity during the month under review has decelerated, while it was negative in the case of crude oil. The previous low was in May, when the growth rate of these sectors stood at 5.2 per cent.
India's industrial output grew a better-than-expected 6.4 per cent in August compared with a downwardly revised 4.1 per cent growth a month ago.
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