A worker checks the flow of sugar inside the a sugar factory in India
India's industrial production shrank by a smaller-than-expected 0.5 per cent in March, data showed on Monday, but analysts said the incoming government still faces a huge challenge to revive the economy.
The Bharatiya Janata Party (BJP) led by Narendra Modi is expected to win the most number of seats in the national election that wrapped up on Monday, and are expected form the next government.
The BJP has promised measures to lift economic growth from a decade low, but analysts say there is little chance of a swift turnaround. Official election results will be announced on Friday.
Output in March from India's mines, factories and utilities contracted 0.5 per cent when compared to the same month from a year ago. However, it is better than what was expected. The market forecasts had projected a shrinkage of around 1.5 percent.
The new government "faces enormous economic and social challenges and a plethora of stalled (economic) reforms", Deepak Lalwani, head of India-focused investment consultancy Lalcap, told AFP ahead of the data.
Manufacturing output, accounting for over three-quarters of the Index of Industrial Production, slid by 1.2 percent in March.
Despite months of weak economic data, investors have been racing to put their money in India.
They are betting that the voters will elect the BJP, who are seen as more investor-friendly than the ruling Congress Party.