Terming the latest estimates for Index of Industrial Production (IIP) as a positive sign towards the growth cycle of industrial activity in India, apex industry body ASSOCHAM today said that July 2018 IIP numbers state an optimistic outlook for the economy. The index of industrial production accelerated in July 2018 which is 6.6 percent higher as compared to 1.0 percent in the month of July 2017, mainly pulled up by strong performance in manufacturing, electricity, primary goods, capital goods, infrastructure/construction, consumer durable goods and non-consumer durable goods," said ASSOCHAM secretary general, Uday Kumar Varma.

"Further, the rise in output of capital goods sector is indicative of improvement in investment demand," said Varma. The chamber states that domestic market will be the driving force in the coming months as growing Indian economy will provide steady flow of new businesses, however, risks to the Indian economy continues to prevail in the forms of continued uncertainties in the global environment due to trade crisis situations, including rising global protectionism and this could further delay a meaningful recovery of external demand, said Varma.