India factory output boosted by festive season demand

A Ford plant in Chengalpattu near Chennai in India A slowdown in global and domestic demand has hurt India's manufacturing sector

Related Stories

India's industrial output rose more than expected in October, boosted by increased demand during the festive season in the country.

Factory output rose 8.2% from a year earlier. Most analysts had forecast a rise of 4.5%.

Manufacturing activity, which accounts for almost two-thirds of overall output, rose 9.6% from a year earlier.

Analysts said the data was also helped by a low base and did not indicate a recovery in India's economy.

Industrial production had dipped 5.1% during the same month last year.

"It's a positive surprise, but bear in mind the jump is distorted by last year's low base, and this is going to reverse in November," said Rajeev Malik, a senior economist with CLSA.

Mr Malik explained that the festival of Diwali, which is traditionally associated with a surge in consumer demand in India, was celebrated in October last year and in November this year.

Factories mostly manufacture and ship their goods ahead of the festival, and as a result, there had been a fluctuation in demand during the respective months.

"The real, credible assessment will be possible only after the November data," Mr Malik said.

More on This Story

Related Stories

More Business stories

RSS

Features & Analysis

Elsewhere on the BBC

  • MoviesMovie magic

    Tech that reads your desires is helping to increase your odds of producing a hit film, says BBC Future

Programmes

  • Ade Adepitan at the ColosseumThe Travel Show Watch

    The challenge of providing disabled access at Europe’s leading ancient monuments

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.