India’s industrial activity is expected to pick up over the next three months as recent GST rate cuts boost demand and spur output, Bank of Baroda said in a report on Wednesday.

The announcement of GST reforms, combined with the ongoing festive season, is expected to boost consumption demand in the near term. This is likely to offset the prevailing uncertainty surrounding trade negotiations, the report noted.

India’s industrial output growth, measured by the Index of Industrial Production (IIP), rose to 4 per cent in September, compared with 3.2 per cent in the same month last year.

Manufacturing and electricity generation improved significantly, while mining output declined partly due to rainfall. Within manufacturing, sectors such as computers, basic metals, and electronics gathered p

See Full Page