| Actual | Previous | |
|---|---|---|
| Year over Year | 3.5% | 1.5% |
Highlights
India's index of industrial production rose 3.5 percent on the year in July, picking up from growth of 1.5 percent in June. Within the industrial sector, manufacturing output growth accelerated from 3.9 percent to 5.49 percent. Flash PMI survey data indicate that conditions in the manufacturing sector moderated but remained strong in August, with final data scheduled for release in coming days.
The Reserve Bank of India left policy rates on hold at 5.50 percent at their most recent meeting earlier in the month. Officials expressed concerns about headwinds emanating from prolonged geopolitical tensions and the impact of a challenging global environment but expressed confidence that domestic demand will be supported by supportive monetary and fiscal policy and congenial financial conditions. They forecast GDP growth of 6.5 percent this fiscal year.
The Reserve Bank of India left policy rates on hold at 5.50 percent at their most recent meeting earlier in the month. Officials expressed concerns about headwinds emanating from prolonged geopolitical tensions and the impact of a challenging global environment but expressed confidence that domestic demand will be supported by supportive monetary and fiscal policy and congenial financial conditions. They forecast GDP growth of 6.5 percent this fiscal year.
Definition
Industrial production measures the physical output of the nation's factories, mines and utilities. Data are not seasonally adjusted and the main is on the annual growth rate of total industrial production and, within that, manufacturing output. The report is usually released around six weeks after the end of the reference month.
Description
Investors want to keep their finger on the pulse of the economy because it usually dictates how various types of investments will perform. The stock market likes to see healthy economic growth because that translates to higher corporate profits. The bond market prefers more subdued growth that will not lead to inflationary pressures. By tracking economic data such as industrial production, investors will know what the economic backdrop is for these markets and their portfolios.
The index is a quantitative index with the production of the items being expressed in physical terms. The Index is compiled by taking into account the quantities of items produced during the current month, compared with the average monthly production in the base year. Selection of items is based on the total production of the items as the primary (main) product as well as secondary (by) product. Data are available monthly within six weeks of reference month.
The index is a quantitative index with the production of the items being expressed in physical terms. The Index is compiled by taking into account the quantities of items produced during the current month, compared with the average monthly production in the base year. Selection of items is based on the total production of the items as the primary (main) product as well as secondary (by) product. Data are available monthly within six weeks of reference month.
