India's industrial production predicted to gain traction

They're continuing to scale higher.

DBS expects GDP growth to gain traction on a pick-up in industrial production, partly on restocking demand, and hastened investment project clearances to take growth towards 6% this year.

While rural incomes might moderate on the uneven strength of the crucial southwest monsoon, a stronger industrial recovery should be supportive of overall consumption spending in latter part of the year.

Here's more from DBS:

India's auto sales continue to scale higher, with total auto sales rose 17% YoY in Aug, hastening from 13% since the start of FY15.

According to a research note from DBS, this development is from a rebound in passenger vehicles while commercial vehicles declined by a smaller pace.

Forward looking business confidence indices have also rebounded strongly, according to surveys conducted by domestic industry groups.

Meanwhile, manufacturing PMIs have settled above the neutral 50 mark, pointing to rise in output but moderating at the margin as firms dip into inventories.

In the first four months of FY15, firm electricity generation and stabilisation in the export oriented manufacturing output have seen IP rise 3.3%, a turnaround from FY14’s -0.1%.

Pulling these factors together, IP is likely to gather momentum here on, to stabilise around 4.0-5.0% for the year.