Quantcast
logo

India's industrial production drops 0.4 percent in September

  • India's industrial output recorded a surprise drop in September, fueling concerns over slowing growth in the country's economy.

    Factory output decreased 0.4 percent compared to the same period last year, according to figures released on Monday. Most analysts had expected a rise of 2.8 percent.

    Manufacturing activity, which makes up nearly two-thirds of overall output, dropped 1.5 percent from a year earlier.

    The weak data has once again led to pressure on the government to boost stimulus measures in order to spur growth.

    Like many Asian powerhouse economies, India has been hit by the economic slowdown in the U.S. and the euro zone, which has hurt its exports.

    In a bid to counter the drop in foreign sales, India has attempted to lift domestic consumption to sustain growth.

    Last month, India's central bank lowered the amount of money that banks need to keep in reserves in order to boost lending.

    The Reserve Bank of India said the move would inject $3.2 billion into the market.