The Finance Ministry's top advisor, Kaushik Basu, today cautioned against over- interpreting industrial growth of over 10 per cent in October, saying next month is likely to see a lower expansion in factory output.
"You must not over-interpret. Next month, the industrial growth is probably going to be lower due to base effect," Basu, the chief economic advisor, told reporters on the sidelines of his lecture at Delhi School of Economics.
The base effect refers to the figures of same period last year. If the figure is high last year, the numbers would look comparatively small. In November last year, industry grew by over 11 per cent.
Industrial output surged 10.8 per cent in October, after slowing down in the previous two months.
Reacting to figures, many analysts said that the trend of slowdown in industrial growth has been reversed.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app