Industrial output increased 2.7% in January this year. According to the Central Statistics Office, the Index of Industrial Production that measures factory output, was buoyed by positive growth in the sectors of electricity, mining and manufacturing.
Electricity production rose by 3.9%, the mining sector grew by 5.3%, and manufacturing output climbed 2.3%. The cumulative growth for the April to January 2016-17 period also improved year on year by 0.6%, the central agency said on Friday.
Capital goods production, which is an important indicator of the investment demand in the country, also grew by 10.7% in January. Its April-January figure, however, plunged by more than 21%. Consumer goods production for the month, on the other hand, contracted by 1%, primarily because of a steep fall in the production of consumer non-durables. This suggests that consumer demand has yet to pick up since the currency ban.
Industrial output had dipped by 0.4% in December, dragged down by a 2% decline in the manufacturing sector. The figures were released as citizens were grappling with a cash crunch caused by the demonetisation of Rs 500 and Rs 1,000 currency notes on November 8.