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India’s industrial output, measured by the Index of Industrial Production (IIP) rose to a six-month high of 5.2 per cent in November 2024, up from 3.5 per cent in October, data released by the Ministry of Statistics and Programme Implementation (MoSPI) on Friday showed.
Economists polled by Reuters had expected a growth of 4.1 per cent.
The factory output, measured in terms of the Index of Industrial Production (IIP), witnessed a growth of 2.5 per cent in November 2023.
The data released by the National Statistical Office (NSO) showed that the manufacturing sector’s output grew 5.8 per cent in November 2024, up from 1.3 per cent in the year-ago month. Mining production rose 1.9 per cent and power output increased 4.4 per cent in November 2024.
Industrial output increased by 4.1% in the April-November period, compared to a revised 6.5% a year ago.
“The IIP rose expectedly to 5.2% in November 2024, although it slightly trailed our forecast (5.8%), with the sequential uptick being broad-based across all three sectors, and all but one of the use-based categories (consumer non-durables),” said Aditi Nayar, Chief Economist and Head – Research & Outreach at ICRA.
Given the base effects related to the shifting festive dates, an average growth over October-November tends to provide a better gauge of the underlying momentum, said Ms Nayar. “By this yardstick, overall industrial growth was modest at 4.4%, driven by consumer durables (9.2%) and infra/construction goods (7.3%), with a distinctly lacklustre performance of primary goods (2.6%) and consumer non-durables (1.5%).”
ICRA expects the IIP growth to moderate to approximately 3-5% in December 2024 (+4.4% in December 2023) from 5.2% in November 2024 (+2.5% in November 2023), partly on account of an unfavorable base.
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