India's industrial output unexpectedly shrank in September and its trade deficit expanded to the widest in several years in October, indicating that the worst for the economy isn't over and measures including monetary easing may be needed to revive growth.
Industrial output contracted 0.4% from a year earlier in September, hurt by the poor performance of the manufacturing sector, government data showed Monday. The government also downwardly revised the output reading for August to a 2.3% expansion from 2.7% reported previously.
Monday, the government also said India's trade deficit in October widened sharply, adding to the gloom.
India's trade gap rose to $20.96 billion from $18.08 billion in September as the country's heavy dependence on imports to meet its oil needs pushed up overall imports, while weak demand in the U.S. and Europe led to a decline in exports.
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