India’s factory output grows at tepid pace of 2.4 pc in November

New Delhi, Jan 12 (Representative) India’s factory output measured in terms of the Index of Industrial Production (IIP) grew 2.4% year-on-year (YoY) in the month of November 2023, data from the Ministry of Statistics and Programme Implementation (MoSPI) showed on Friday. While mining sector output recorded 6.8% growth in November 2023, the manufacturing sector grew at a tepid pace of 1.2% during this period. Power sector output recorded 5.8% year-on-year growth in November 2023, as per the MoSPI data.

Commenting on November IIP numbers, ICRA Chief Economist Aditi Nayar said, “The IIP growth expectedly crashed in November 2023, printing close to our forecast of 2.2%, following the reversal in the base effect related to the change in the festive calendar.” She further said, “Looking ahead, the mixed YoY performance of the available high-frequency indicators in December 2023 relative to November 2023 suggests that the YoY IIP growth will improve only somewhat to 3-5% in that month.” As per official data, IIP recorded 6.4% growth in the April–November period of the current financial year 2023–24.