Industrial Growth Sees Rebound In July; Rises To 4.3 Per Cent After June Low Of 1.2 Per Cent

In a positive sign amidst talk of an economic slowdown, industrial growth as tracked by the index of industrial production (IIP) in July has seen a marked improvement to 4.3 per cent from the June low of 1.2 per cent, reports The Economic Times.

The figure is still lower than July last year, when the index was at 6.5 per cent. Cumulative factory output growth for April-July is 3.3 per cent, more than two percentage points lower compared to growth in the same time period last year when the figure stood at 5.4 per cent.

Another important indicator of economic activity, the consumer inflation rate, saw a marginal rise to 3.21 per cent in August, up from 3.15 per cent in July. This figure remains below the inflation target set by the RBI at 4 per cent.

In recent weeks, the state of the economy has come into the national spotlight following the release of data which showed that first quarter GDP growth for FY20 was only 5 per cent. Moreover, recent figures have shown a rapid decline in sales for the automobile sector.