Monsoons hit mining and power, but all is well with industry: Finance Ministry
The Hindu
‘Consumption, investments, services rebounding even as inflation is on the wane’
The Finance Ministry on Monday sought to play down concerns about moderating industrial growth, stating that the September estimates for the Index of Industrial Production (IIP) showed a sustained increase in industrial output and would have been higher if not for heavy monsoons disrupting coal mining and electricity generation.
As per data released last week, the industrial output fell 2.6% month-on-month in September, while year-on-year growth moderated to 3.1% from 12% recorded in August.
“The manufacturing index in IIP has held steady and is likely to rise in subsequent months mirroring the eight-month high in Purchasing Manager’s Index (PMI) for manufacturing reaching 55.9 in October,” the Ministry said in a statement titled, ‘FY 2021-22: Rising Industrial growth, Restrained Inflation and Strong Services Revival’.