It’s seems like a positive development for the Indian economy, the country’s factory output for November has turned positive after registering negative growth for two consecutive months.
The Index of Industrial Production (IIP) for the month of November grew by 1.8 %, signalling a reversal of the manufacturing and production slump witnessed over the last few months.
Manufacturing activity also registered a growth of 2.7 % against a contraction of 2.1 % in October. Mining activity also registered a positive growth of 1.7 % in November, significantly rebounding from a contraction of 8 % in October.
It may be noted that the growth of primary products expanded 0.3 % against a contraction of 6 % in October. Production of capital goods in November saw a contraction of 8.6 % against a fall of 21.9 % in October.
Meanwhile, consumer durables fell 1.5 % in November against a fall of 18 % in October.
While expansion in factory output and manufacturing activity signal positivity on the supply side, the government still has to resolve demand contraction across sectors.
However, marginal expansion is a good sign of the Indian economy as it is one of the 1st indicators of improving productivity.
Now all eyes will now be on the upcoming budget, where the government is expected to introduce more sector-specific boosters for economic revival in the country.