A low base pushed factory output to a 14-month high of 10.3 per cent in August, data released by the ministry of statistics and programme implementation showed. The index of industrial production was 0.7 in August 2022.

“IIP growth at 10.3 per cent is overstated due to the base effect (-0.7 per cent last year) and hence should be viewed against this backdrop. We need to see if such buoyancy gets reflected in the sales of India Inc in their Q2 results,” Madan Sabnavis, chief economist, Bank of Baroda, said.

“All manufacturing sectors witnessed positive growth. Garments and chemicals witnessed negative growth. This can be attributed to lower growth in exports . The electronics industry also witnessed negative growth which again can be linked to existing high stocks and lower export demand.”

Mining grew 12.3 per cent, manufacturing expanded 9.3 per cent and power, 15.3 per cent. Based on the end use of products, the output of capital goods grew 12.6 per cent. Consumer durables output rose 5.7 per cent and consumer non-durables output grew 9.0 per cent.