August IIP grows 6.4%

The manufacturing sector rose the most at 6.9% on yearly basis

Industrial Production grew by 6.4% for the month of August, an improvement  over the 4.2% growth registered in the previous month of June, official data showed on Monday.

As compared to the 0.5% rise from a year back, the Index of Industrial Production (IIP) showed a better performance this time.

Although all sectors registered positive growth, the manufacturing sector, which accounts for about 75% of the IIP, held the distinction of rising the most at 6.9% on  yearly basis. It had contracted by 1.1% in August, last year. It is also a small rise over last month, when it grew 4.5%.

Electricity generation at 5.6% was dwarfed by the 12.9% growth in the corresponding period last year. However the rise this time was higher than the 3.5% registered last month.

Mining output increased by 3.8% as against 1.2% last year. However, the growth is important since it has recovered from the low 1.3% seen last month.

The cumulative growth for the current financial year, i.e from April-August 2015-16 stands at 4.1% as against 3% in the year ago period. If this growth is sustained in September, a positive impact on GDP growth for the second quarter would be assured.