The Department of Industrial Policy and Promotion is expected to release the Index of Industrial Production for September on Wednesday. But if you go by the indirect tax collections reported by the finance ministry for October, the country’s industrial growth scenario going forward looks pretty grim. Excise and custom duty collections have fallen by 5% in the month for the first time in several years.
Incidentally, when IIP growth shrunk to 1.3% in August, indirect tax collections were still seeing positive growth of 4.8%. While indirect tax collections have fallen into negative territory only in October, excise duty collections – a direct indicator of India’s manufacturing output — have seen negative growth for the second month in a row.
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