India's industrial production jumped in April, beating market forecasts in another positive sign for new Prime Minister Narendra Modi who has pledged to revive the faltering economy.
Output grew 3.4 per cent year-on-year in April after contracting for the past two months, driven mainly by increases in the manufacturing, mining and power sectors, government data showed on Thursday.
Manufacturing grew 2.6 per cent, while output of capital goods such as plant equipment, a harbinger of future investment, increased 15.7 per cent.
"Today's figures on Indian industry were the most positive in many months," chief Asia economist Mark Williams from Capital Economics said.
Modi vaulted to power last month after a landslide election victory over the left-leaning and scandal-plagued Congress party, with a promise to reform the sluggish economy growing at under five per cent.
The right-wing leader has pledged to rebuild India's manufacturing sector, overhaul crumbling infrastructure and bring back foreign investors.
In a boost for the new government, figures released on Wednesday showed India's exports jumped to a six-month high.
The latest figures beat forecasts of around a 2.0 per cent growth, but analysts expressed a note of caution.
Separate figures on Thursday showed consumer price inflation cooled to 8.28 per cent in May from 8.59 per cent in April year-on-year, but was still among the highest rates globally.
Food inflation fell slightly to 9.56 per cent in May from 9.66 per cent in April.
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