Industry growth @ 4.2%

 

Industrial output growth held steady in July, boosted by healthy expansion in the manufacturing, capital goods and consumer durables segments, signalling that the key sector may be on the path to revival.
The index of industrial production rose 4.2% in July compared to an upwardly revised 4.4% in the previous month and 0.9% growth in the year-ago period.
The strong numbers for the second successive month brought cheer to policymakers, who said the numbers display signs of an improving economy .
Data showed the manufacturing sector rose 4.7% in July compared to a decline of 0.3% in the same month last year, while the capital goods segment, which is a barometer of industrial activity , rose 10.6% compared to a decline of 3%.
The durables sector rising 11.4% compared to a contraction of 20.4% in July 2014. The consumer nondurables sector remained a worry, contracting 4.6% year-on-year compared to a growth of 5.2% in July 2014.
An analysis of the data by the finance ministry said the manufacturing sector is slowly emerging as a leader of industrial growth.
Economists said the data showed some promise.
A string of recent data has pointed to green shoots of recovery in the economy and the government is confident of achieving 8% growth in the current fiscal. Sliding inflation has also triggered hopes of a reduction in interest rates. The Reserve Bank of India will review monetary policy later in the month and pressure has mounted on the central bank to cut rates and help boost growth.