Manufacturing sector growth is improving, shows SBI Index

Country's manufacturing sector growth improved on <g data-gr-id="16">an yearly</g> basis in September, an SBI research report said, adding that mining and electricity are still acting as a drag on economic activity.

The yearly SBI Composite Index, an indicator for manufacturing activity in the country, for September stood at a <g data-gr-id="13">four month</g> high at 53.9, as against 53.4 in the same period last year. However, the monthly Index declined to 48.4 in September from 53.1 in the previous month.

"The upturn has been majorly driven by manufacturing, while mining and electricity are still acting as a drag on economic activity," the report said adding that "we expect, September IIP to be the highest since November 2014, when it expanded at more than 5 per cent". The report further said that there are signs of credit growth in some industries like Drug & Pharmaceuticals, <g data-gr-id="19">Petro Chemicals</g>, Basic Metals, Iron and Steel and Power sector.

Going forward, Government plans to develop a total of 66,117 km of roads under different programmes and has set an objective of building 30 km of roads a day from 2016.