Industrial output grows 1.8% in November as mining, manufacturing improve

Industrial output, measured in Index of Industrial Production, increased 1.8 per cent in November as performance in mining and manufacturing sectors improved. With this, factory output broke the three-month declining trend that prevailed since August last year.

As per government data released on Friday, output in mining and manufacturing sectors in November grew by 1.7 per cent and 2.7 per cent, respectively. Electricity production, however, declined by 5 per cent during the month under review.

“In terms of industries, thirteen out of the twenty three industry groups in the manufacturing sector have shown positive growth during the month of November 2019 as compared to the corresponding month of the previous year,” government said in a statement.

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As per user-based classification, factory output of primary goods declined marginally by 0.3 per cent in November 2019, whereas that in capital goods fell by 8.6 per cent. While intermediate goods saw production rise 17.1 per cent, infrastructure and construction goods declined by 3.5 per cent. Industrial output in consumer durables category declined 1.5 per cent, and increased 2 per cent in consumer non-durables category.

“The indices for October 2019 have undergone the first revision and those for August 2019 have undergone the final revision in the light of the updated data received from the source agencies,” the government said.

“For the first time in the last four months, Nov IIP growth rate has increased to 1.8 per cent from -3.8 per cent in October as production activity in cement and fertilisers has picked up. Due to a major slowdown in the economy, India’s IIP has been contracting since August 2019, however, a favourable base effect and improvement in PMI numbers has led to an expansion,” said Rahul Gupta, Head of Research – Currency, Emkay Global Financial Services.

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