India’s industrial production growth slumped to an 8-month low of 2.4 per cent in November, mainly because of poor performance by the manufacturing sector, according to the Ministry of Statistics & Programme Implementation data released on Friday. The growth in factory output measured in terms of the Index of Industrial Production (IIP) was 7.6 per cent in November 2022.
According to the data, the previous low of IIP growth was recorded at 1.9 per cent growth in March 2023. The IIP growth at 2.4 per cent in November is the lowest so far in the current fiscal. During April-November 2023-24, the IIP growth works out to be 6.4 per cent, up from 5.6 per cent in the corresponding period a year ago. The IIP for October 2023 was revised to 11.6 per cent from provisional estimates of 11.7 released last month.
As per official statement, 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. The IIP data released by the National Statistical Office (NSO), the manufacturing sector’s output growth decelerated to 1.2 per cent in November 2023 against 6.7 per cent a year ago.
The power generation growth also slowed to 5.8 per cent in November 2023 compared to 12.7 per cent growth in the year-ago period. Mining output growth came down to 6.8 per cent in the month under review from 9.7 per cent growth a year ago.
As per use-based classification, the capital goods segment contracted 1.1 per cent in November this year compared to a growth of 20.7 per cent in the year-ago month. Consumer durables output during the month declined by 5.4 per cent against 5 per cent growth a year ago. Consumer non-durable goods output contracted by 3.6 per cent compared to a 10 per cent expansion a year earlier. Infrastructure/construction goods reported a marginal growth of 1.5 per cent against a 14.3 per cent expansion.
The data also showed that the output of primary goods logged 8.4 per cent growth in the month compared to 4.8 per cent in the year-ago period. The intermediate goods output in November remained flat at 3.5 per cent.
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