Good news is hitting the economy in succession. After trade data, it is the industrial sector production trend that is bringing joy. The industrial production in the country has recorded a positive growth in July after being negative for two previous months. A more welcome feature of the industrial revival is the increased investment activity represented by the capital goods sector growth.
Industrial growth was 2.6 percent in July compared to 2.8 percent and 1.7 percent contraction recorded in May and June respectively.
The break in negative trends in the industrial sector may add to revival especially because of the good performance of the capital goods sector. The capital goods recorded a commendable 15.5 percent uptrend indicating investment revival and employment generation in the coming months.
So far, the positive turnaround during the last couple of days should be backed by some strong government action to perpetuate the positive business sentiment into the medium term. Similarly, a depreciated rupee also is an opportunity to raise export revenue from the manufacturing sector.