New Delhi, Oct 12: India’s IIP or Index of Industrial Production grew up 4.3 per cent in August, a nine-month high, government’s data showed. The mining sector grew by 9.4 per cent; manufacturing by 3.1 per cent; electricity by 8.3 per cent if compared to the corresponding period in 2016.
Meanwhile, the retail inflation for September was flat at 3.28 per cent. The August figure was revised to 3.38 per cent. The inflation rate for the corresponding period last month was 4.39 per cent. (Also read: World Bank Lowers India’s Growth Forecast from 8.6% to 7%)
The report further said that the food inflation came down to 1.25 per cent from 1.52 per cent, due to a dip in vegetable prices.
Indian economy is suffering from a slow growth. India’s GDP growth slumped to a low of 5.7 per cent in the first quarter of the fiscal year 2017-18. Former Prime Minister Manmohan Singh had predicted that demonetisation and GST would shave the GDP growth by 2 percentage points– a prophecy that seems to have come true. (Also read: India Growing Pretty Robustly: World Bank President Jim Kim)
The Reserve Bank of India (RBI) didn’t change key policy rates, reasoning that the implementation of Goods and Services Tax (GST) adversely impacted economic growth. The RBI also trimmed GVA forecast to 6.7 per cent from 7.3 per cent. The International Monetary Fund also downgraded growth forecast to 6.7 per cent.