India's index of industrial production rose 4.0 percent on the year in September, as it did in August. Within the industrial sector, manufacturing output growth picked up from 3.8 percent to4.8 percent. Flash PMI survey data indicate that conditions in the manufacturing sector strengthened in October, 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 at the start of the month. While acknowledging risks from global trade tensions, officials remain optimistic about domestic resilience, underpinned by strong consumption demand, and supportive fiscal measures. They project GDP growth of 6.8 percent for this fiscal year. The RBI's next policy meeting will be held in early December.

Output growth is expected to slow to at 2.2 percent in September from a year ago versus 4.0 percent in August as India’s economy continues to struggle.

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.

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.