India's Industrial Production Hits 16-Month High Of 11.7 Per Cent In October; Retail Inflation Jumps To 5.55 Per Cent In November

India's industrial production soared to a 16-month high in October, recording an impressive 11.7 per cent year-on-year growth in the Index of Industrial Production (IIP).

The surge, attributed to a favourable base effect, contributes to the positive outlook for the first advance estimates of the 2023-24 gross domestic product (GDP) data, set to be released on 5 January, reported Business Standard.

In contrast, November witnessed a deviation in the downward trend of retail inflation, as the Consumer Price Index (CPI) rose to a three-month high of 5.55 per cent year-on-year.

The increase was driven partly by a seasonal spike in vegetable prices.

The recent IIP figures align with this optimistic outlook.

While the rebound in industrial production indicates sustained economic momentum, experts caution against signs of a potential slowdown.

Factors such as the RBI's consumer confidence survey signalling weakened future expectations and measures to control risky lending may impact credit growth and domestic demand.