Note ban effect eases as industrial output rises 2.7% in Jan

IIP had contracted 0.1% in December; April-Jan IIP at 0.6% vs 2.7% y-o-y

Two months after demonetisation was rolled out by the government, industrial output in January rose 2.7 per cent, pushed up by a growth in capital goods production as well as a rise in the manufacturing segment, government data showed on Friday.

Industrial output had missed growth by a sliver in the previous month of December, falling 0.1 per cent as compared to a year earlier, driven down by a contraction in consumer and capital goods production attributed to the demonetization drive.

For January, growth was expected in the IIP as it reflects the corporate sector which was not as badly hit as