IIP bounces back in Jan, expands by 2.7%

The IIP output was a revised -0.1% in December

Industrial production bounced back in January expanding by 2.7% year-on-year mainly due to better performance by the capital goods segment, a barometer of investment activities.

The factory output, measured in terms of Index of Industrial Production (IIP), had contracted by 0.1% in December on account of cash crunch following demonetisation of high value currency notes.

The industry output had expanded by 5.53% in November.

The capital goods segment grew by 10.7% in January against a contraction of 21.6% in the same month of last financial year.

The basic goods category expanded by 5.3% against 1.9% growth in January 2016. On the other hand, the