Indian industrial output rises 2.7 %

India’s industrial output picked up pace in August, official data showed on Friday, growing 2.7 percent from the same month a year earlier in a better-than-expected but still muted performance.

The country’s once-booming economy has been hit by a combination of high interest rates, Europe’s debt crisis that has slowed exports, and sluggish investment caused by domestic and overseas concerns about policy and corruption.

Industrial production, which spans the manufacturing, mining and electricity sectors, grew 2.7 percent in August after revised figures for July showed output shrank 0.2 percent. Previous data showed a 0.1 rise percent in July.

“The still-weak industrial production momentum confirms industrial activity remains subdued and overall economic momentum muted,” Jyoti Narasimhan senior economist at IHS Global Insight, told AFP.