NEW DELHI (Reuters) -India's industrial output rose 3.1% year-on-year in September, backed by manufacturing activity, government data showed on Tuesday.
Economists polled by Reuters had expected a growth of 2.5%. In August, industrial output had contracted for the first time in nearly two years.
Manufacturing output climbed 3.9% year-on-year in September, electricity generation grew 0.5% and mining activity rose 0.2%, the data showed. The sectors had grown by 5.1%, 9.9% and 11.5%, respectively, a year ago.
India's manufacturing sector in September recovered from a 22-month low hit in the previous month, as stockpiling ahead of India's festive season lifted industrial production, said Paras Jasrai, an economist at India Ratings and Research.
India's annual festival season typically runs from late September to early November.
In the April-September period, industrial output increased by 4%, compared to revised 6.2% a year earlier.
With the early onset of the festive season helping balance an unfavourable base, industrial output is expected to grow between nearly 3% and 4% in October, said Aditi Nayar, an economist at ratings agency ICRA.