New Delhi — The August 2015 Index of Industrial Production (IIP) growth has registered an increase of more than 6% after 34 months. The cumulative IIP growth in the first 5 months in 2015-16 at 4.1% is better than the growth of 3% in the same period last year.
The manufacturing sector has grown 6.9% in August 2015, which has spearheaded industrial production. Double-digit growth in capital goods (21.8%) and consumer durables (17%) in August 2015, helped by a favourable base effect, implies improvement in investment and consumption demand.
The year-on-year inflation as reflected in all India Consumer Price Index (CPI, combined) increased to 4.4% in September 2015 from 3.7% in August 2015. However, it is low compared to 5.6% in September 2014. Inflation based on Consumer Food Price Index (CFPI) in September 2015 (3.9%) is lower than in September 2014 (6.2%).
Inflation continues to be low as per the latest CPI numbers. The industrial growth data is a reflection of recovery in the economy, predominantly led by domestic demand as the external sector environment continues to be sluggish.
The Ministry of Finance has stated that the data on the IIP for August 2015 and CPI’s new series in September 2015 point at a steady improvement in the Indian economy.