Factory output growth zooms to 16-mth high

Gaining Steam

♦ Previous high was 12.6% in June 2022

♦ IIP grew 6.9% during Apr-Oct 

New Delhi: India’s industrial production growth accelerated to 16-month high of 11.7 per cent in October, mainly due to double-digit growth in manufacturing, power and mining sectors’ output, according to the official data released on Tuesday. The factory output growth measured in terms of the Index of Industrial Production (IIP) had contracted by 4.1 per cent in October 2022.

The previous high of IIP growth was recorded at 12.6 per cent in June 2022. During April-October 2023-24, the IIP growth works out to be 6.9 per cent, up from 5.3 per cent in the corresponding period a year ago. The IIP for September 2023 was revised to 6.2 per cent from provisional estimates of 5.8 released last month.

“India’s IIP growth rate rises to a 16-month high of 11.7 per cent in October 2023,” an official statement said.

It also stated that the growth rates over the corresponding period of the previous year are to be interpreted, considering the unusual circumstances on account of the Covid-19 pandemic since March 2020. As per the IIP data released by the National Statistical Office (NSO), the manufacturing sector’s output grew 10.4 per cent in October 2023 against a contraction of 5.8 per cent a year ago.

Power generation rose 20.4 per cent in October 2023 compared to 1.2 per cent growth in the year-ago period. Mining output rose by 13.1 per cent in the month under review against a 2.6 per cent growth a year ago. As per use-based classification, the capital goods segment grew 22.6 per cent in October this year compared to a 2.4 per cent contraction in the year-ago month. Consumer durables output during the month grew by 15.9 per cent against a contraction of 18.1 per cent.

Consumer non-durable goods output increased by 8.6 per cent compared to a contraction of 13 per cent a year earlier. Infrastructure/construction goods posted a growth of 11.3 per cent against a 1.7 per cent expansion. The data also showed that the output of primary goods logged 11.4 per cent growth in the month compared to 2.1 per cent in the year-ago period.