The factory output, measured in terms of Index of Industrial Production (IIP) grew 5.1 percent in November 2016.
According to data released by Ministry of Statistics and Programme Implementation, Manufacturing sector, which constitutes 77.63 percent of the IIP, recorded an impressive growth of 10.2 percent in November as compared to 4 percent a year ago.
Meanwhile, retail inflation crossed the RBI's comfort level and rose to 5.21 percent in December on rise in prices of food items, egg and vegetables, dashing hopes of interest rate cut in the near future.
The retail inflation, based on Consumer Price Index (CPI), was 4.88 percent in November. In December 2015, it was 3.41 percent.
The Reserve Bank has been asked by the government to keep inflation at 4 percent, plus or minus 2 percent, and its rise beyond the comfort zone will put pressure on the central bank not to cut rate.