Published: Mon, March 12, 2018
Business | By Kate Woods

India Inc expects further improvement as IIP grows at 7.5%,

India Inc expects further improvement as IIP grows at 7.5%,

Growth in the Index of Industrial Production quickened to 7.5% in January from 7.07% in December.

The Index of Industrial Production (IIP) had grown at 7.1 percent in December 2017, according to the data released by the Central Statistics Office (CSO) today.

Retail inflation, measured by Consumer Price Index (CPI) is the main price gauge that the Reserve Bank of India (RBI) tracks.

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In line with the recent trend of recovery in manufacturing, the sector, which constitutes 77.63 per cent of the index, grew by 8.7 per cent during January, as compared to 2.5 per cent in the same month past year.

Food and beverages inflation, the biggest contributor at 45.86%, stood at 3.38% in February 2018 against 4.66% in January 2018.

RBI had left policy rates unchanged fearing a rise in inflation and had projected Q4FY2018 inflation at 5.1%, including the impact of HRA, considering the rise in fuel prices in January 2018, and less-than-usual moderation in seasonal food prices. However, the inflation moved up for pulses and products (-) 17.35% and spices (-) 1.01% in February 2018.

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Dutch industrial production expanded at the quickest pace in nearly seven years in January, figures from the Central Bureau of Statistics showed Monday. While the manufacturing sector grew 8.7% in January, compared with 2.5% in the same month a year ago, capital goods grew 14.6% and consumer non-durables 10.5% in the month under review.

In January, manufacturing grew by a robust 8.7 per cent, followed by 7.6 per cent increase in electricity generation.

The group that showed the greatest negative growth was "manufacture of tobacco products", which declined by 46.5%.

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Commenting on the IIP numbers, industry chamber Assocham described these as signs of "an underlying pick-up in the growth trajectory". Primary goods saw growth accelerating to 5.8% in January from 3.73% in December. "However, the momentum of the recovery needs to be sustained through effective implementation of the structural and infra related reforms".

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