New Delhi: Business climate improved in September primarily buoyed by better agricultural exports and uptick in tourism sector, according to a report.
The ZyFin Research's Business Cycle Indicator (BCI), a lead indicator to IIP (Index of Industrial Production), has registered a marginal year-on-year growth of 4.5 percent in September as against 4.3 percent witnessed in August.
This is the first increase since June 2013. However, it continues to be significantly below its eight-year average of 7 percent, financial information provider ZyFin Research said today.
"The uptick is attributed to the rise in pig iron production (a vital intermediate good making its way into many other industries), rising agricultural exports, increasing organic chemical imports, increase in container cargos being handled by major ports, uptick in revenue earnings from tourists and continued decline in global gold prices over the last few months," the report noted.
On the other hand, dwindling growth in revenues earned from railway freight carriages, a volatile and weak currency and declining electricity production over the last few months has arrested any significant uptick in BCI.
Commenting on the September numbers, ZyFin Senior Advisor Surjit Bhalla said, "It still seems like a tepid recovery and there is little to change the view that the Indian economy, while better, is still weak."