Manufacturing output, balance of payments improving in India

MUMBAI Signs of economic revival in India are indicated by growth in manufactured capital goods and consumer durables. Data released by the Central Statistics Office shows industrial output rose 4.2% in July, compared to an upwardly revised 4.4% the previous month and 0.9% growth in July 2014.

The strong numbers brought cheer to policymakers who said they show signs of an improving economy.

Finance Minister, Arun Jaitley, said balance of payments data and first quarter 2015-2016 GDP numbers point towards steady improvement in the Indian economy - a larger absolute decline in merchandise imports relative to merchandise exports.

Madan Sabnavis, Chief Economist at Care Ratings, expects both investment and consumption to pick up in the second half of this year.

Economics Affairs Secretary, Shaktikanta Das, noted that the current account deficit, at 1.2%, is better than last year. The Government is confident of achieving  8% growth in the current fiscal year  (N Hariharan – ATI).