New Delhi, Oct 11 (FN Bureau) India’s factory output measured in terms of Index of Industrial Production (IIP) contracted 0.1% year-on-year (YoY) in August 2024, as per official data released on Friday. “The IIP growth rate for the month of August 2024 is (-) 0.1% which was 4.7% in the month of July 2024,” said Ministry of Statistics & Programme Implementation (MoSPI) in a media release. Both mining and electricity sector output declined in the month of August this year while manufacturing sector registered marginal growth. The growth rates of mining, manufacturing and electricity sectors during August this year were (-) 4.3%, 1% and (-) 3.7% respectively. “It is likely that the decline in the growth of mining sector is due to heavy rainfall in the month of August 2024,” the MoSPI said.
As per the official data, within the manufacturing sector, top three positive contributors for the month of August 2024 were “Manufacture of basic metals” (3.0%), “Manufacture of electrical equipment” (17.7%), and “Manufacture of chemicals and chemical products” (2.7%). “Based on use-based classification, top three positive contributors to the growth of IIP for the month of August 2024 are intermediate goods, consumer durables and infrastructure/construction goods,” MoSPI said. Commenting on August IIP numbers, ICRA chief economist Aditi Nayar said that it largely reflects the temporary dousing of mining output, electricity demand and retail footfalls by the heavier than normal rains, as well as an unfavourable base. “Nevertheless, in disaggregated terms, all the use-based categories reported a deterioration in August 2024 relative to the previous month,” she further said.
The economist noted that the available high frequency indicators point to a decidedly mixed trend in the growth in economic activity in September 2024 relative to August 2024. “The YoY performance of some mobility-related indicators including vehicle registration, and petrol consumption deteriorated between these months, partly on account of the Shraadh period from mid-September 2024. While the pace of expansion in finished steel consumption dipped in September 2024 vis-à-vis August 2024, it remained in double-digits for the eighth consecutive month. Additionally, growth in port cargo traffic eased slightly, led by contraction in coal shipments, between these months,” Aditi Nayar said.