IIP growth rises to a 6-month high of 5.2% in November

India’s factory output, based on the Index of Industrial Production (IIP), grew at 5.2 per cent in November, rising from 3.5 per cent in the month of October, data released by Ministry of Statistics and Programme Implementation (MoSPI) showed on Friday. The uptick was driven primarily by the manufacturing sector wherein output grew by 5.8 per cent inNovember as against 4.1 per cent in the preceding month.

The growth rates of the three sectors, Mining, Manufacturing and Electricity for the month of November 2024 stood at 1.9 per cent, 5.8 per cent and 4.4 per cent respectively.

Per the release, the quick estimates of IIP was at 148.4 against 141.1 in November 2023. The indices of industrial production for the mining, manufacturing and electricity sectors for the month of November 2024 came in at 133.8, 147.4 and 184.1 respectively. 

Within the manufacturing sector, 18 out of 23 industry groups at NIC 2 digit-level have recorded a positive growth in November 2024 over November 2023. The top three positive contributors for the month of November 2024 are – Manufacture of basic metals (7.6 per cent), Manufacture of electrical equipment (37.2 per cent) and Manufacture of other non-metallic mineral products (12.0 per cent).

The corresponding growth rates of IIP as per use-based classification in November 2024 over November 2023 are 2.7 per cent in Primary goods, 9.0 per cent in Capital goods, 5.0 per cent in Intermediate goods, 10.0 per cent in Infrastructure/ Construction Goods, 13.1 per cent in Consumer durables and 0.6 per cent in Consumer non-durables (Statement III). Based on use-based classification, the top three positive contributors to the growth of IIP for the month of November 2024 are – Infrastructure/ construction goods, Consumer durables and Primary goods.

Aditi Nayar, Chief Economist and Head – Research & Outreach at ICRA said the IIP was on expected line but slightly lower than ICRA forecast, “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. 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%).”