With 17 of the 22 industry groups in the manufacturing sector showing a positive growth, the industrial output in October recorded a five-year high of 9.8 per cent year-on-year.
The higher growth was on account of a favourable base.The industrial output in September 2015 was 3.6 per cent.
Though manufacturing registered a high growth in October, the low base in major sectors like capital goods and consumer durables has contributed significantly to this high growth. Nonetheless, the outlook for growth remains positive and can be strengthened in coming months if pace of reforms continues.
The global slowdown continues to impact trade and affect India’s exports adversely thus impacting manufacturing growth especially when the domestic demand is also sluggish.
What we can infer from this is that it is a positive growth. After five years, for the first time industrial growth is 9.8 percent . It is a welcome note. Environment for industrial growth is cordial in India now. It may slowly increase step by step due to the actions of central government. Foreign direct investments are flowing into the country because of efforts of PM Narendra Modi through Make in India and other initiatives like Indo-Japan relations. Inflation is 5.5 percent. If the production increases in many sectors, essential commodities rates will come down and be beneficial to the people.
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