The IIP (Index of Industrial Production) which captures the factory output, dragged down to a sluggish pace of 2.2% for the month of October as per the government data showed on Tuesday. The rate of growth is slower than that of 3.8 per cent recorded for the month of September while it has been on downtrend at 4.5% in August.
This slowdown has been attributed to the slowdown in manufacture and subdued demand, a result of the disruption in market caused by the rollout of Goods and Services Tax (GST). In October, the manufacturing sector which accounts for 77.63 per cent of the index grew at 2.5 per cent, compared to 3.4 per cent in September. Mining sector also came a cropper growing at a mere 0.2 per cent.
However, as the GDP growth rate for the last quarter halted a five-quarter slide, there are hopes of green shoots to appear in the state of economy.
Watch: Retail Inflation At 15-Month High, Industrial Output Growth Dips To 2.2% pic.twitter.com/XdkoFCgc6T
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