India's economy showed positive signs in October and November, as factory output and retail inflation both moved in favorable directions.
According to data from the National Statistics Office (NSO), India's factory output, as measured by the Index of Industrial Production (IIP), rose to a three-month high of 3.5% in October 2024. This was an increase from 3.1% in September, despite a challenging base of 11.9% growth in October 2023. The growth was primarily driven by strong performances in the manufacturing, mining, and electricity sectors, signaling continued economic resilience.
In a separate report, the NSO also revealed that retail inflation, measured by the Consumer Price Index (CPI), eased to a three-month low of 5.48% in November, down from 6.21% in October. The decline was attributed to a moderation in food prices, particularly vegetables, which had been a significant driver of inflation in recent months. The easing of inflation comes as a relief for consumers and is expected to provide some flexibility for the Reserve Bank of India (RBI) in its future monetary policy decisions.
Together, these indicators paint a picture of steady economic recovery, with the manufacturing sector showing growth and inflationary pressures subsiding, potentially boosting confidence in the economy heading into 2025.
