New Delhi, Dec 12 (FN Bureau) India’s index of industrial production (IIP) rose to a 16-month high of 11.7% year-on-year (YoY) in October this year, government data showed on Tuesday. As per Ministry of Statistics & Programme Implementation (MoSPI) data, mining, manufacturing and electricity sector output grew in double-digit in October. While mining sector output grew 13.1% year-on-year in October 2023, manufacturing sector expanded 10.4%. The electricity sector recorded a growth of 20.4%. The MoSPI data showed IIP grew by 6.9% in April-October period of this year compared to 5.3% in the same period a year ago.
“ICRA expects the YoY IIP growth to slow down sharply to 2-4% in November 2023, driven by the fewer number of working days amid the late onset of the festive season in 2023 vis-à-vis 2022, as well as an unfavourable base (+7.6% in Nov 2022), as signalled by the sharp moderation in growth of several high frequency indicators,” said ICRA chief economist Aditi Nayar. She further said, “Given the shift in the festive calendar, we believe it would be more meaningful to compare the average YoY growth performance in October-November 2023 vis-à-vis October-November 2022.”
Commenting on October IIP numbers, Vivek Rathi, National Director Research, Knight Frank India said that while manufacturing, mining and electricity has been able to drive the industrial output in the last few months, the capital goods output as well has picked up. “This indicates a heightened economic activity and a sustained demand for goods in the economy. Production of infrastructure/ construction goods as well has remained strong driven by growing demand for real estate and government push to boost infrastructure in the country,” he said.