India's economy gets double dose of good news; industrial output rises 3.1%, inflation hits record low of 2.18%

New Delhi: India's industrial production grew by 3.1 percent in April due to good performance of electricity, mining and manufacturing sectors, as per data released by Central Statistics Office (CSO).

Factory output measured in terms of Index of Industrial Production (IIP) was 6.5 percent in May last year.

The cumulative growth for the period April-March 2016-17 over the corresponding period of the previous year stood at 5 percent, as per the data released by Central Statistics Office Friday.

The manufacturing sector, which accounts for over 75 percent of the index, grew by 2.6 percent in May.

Capital goods segment, which is a barometer of investment, however, contracted by 1.3 percent in May.

Mining sector output rose by 4.2 percent in May.

Meanwhile, retail inflation fell to a record low of 2.18 percent in May as prices of kitchen staples like vegetables and pulses declined sharply although there was a marginal spike in fruit rates. Clothing, housing, fuel and light also saw lower inflation.

The CPI based retail inflation stood was at 2.99 percent in April 2017. In May 2016, it was at 5.76 percent.