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

  • Dana Lone HillDana Lone Hill

    The Native American names that break Facebook rules


  • Painting from Rothschild collectionDark arts Watch

    The 50-year fight to recover paintings looted by the Nazis


  • Mukesh SinghNo remorse

    Delhi bus rapist says victim shouldn't have fought back


  • Signposts showing the US and UK flagsAn ocean apart

    How British misunderstanding of the US is growing


Elsewhere on the BBC

  • StudentsBull market

    Employers are snapping up students with this desirable degree

Programmes

  • 3D model of Christ the Redeemer statueClick Watch

    Using drones to 3D map the famous Brazilian landmark Christ the Redeemer

Try our new site and tell us what you think. Learn more
Take me there

Copyright © 2015 BBC. 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.