Factory output grows 3.1 pc in September after declining in August

New Delhi, Nov 12 (FN Agency) India’s factory output measured in terms of Index of Industrial Production (IIP) grew at 3.1% year-on-year in the month of September this year as against contraction of 0.1% in the previous month, as per data released by Ministry of Statistics and Programme Implementation (MoSPI) on Tuesday. As per the official data, the mining sector grew at 0.2% on an annualised basis in September this year. Manufacturing and electricity sector output grew at 3.9% and 0.5% respectively during this period. Within the manufacturing sector, top three positive contributors for the month of September 2024 were “manufacture of coke and refined petroleum products” (5.3%), “manufacture of basic metals” (2.5%), and “manufacture of electrical equipment” (18.7%).

“Based on use-based classification, the top three positive contributors to the growth of IIP for the month of September 2024 are –Intermediate goods, Consumer durables and Primary goods,” the official press release said. Commenting on September IIP numbers, ICRA chief economist Aditi Nayar said, “Balancing between the positive impact of the early onset of the festive season and an unfavorable base (+11.9% in October 2023), ICRA anticipates the YoY IIP growth to print at 3.0-4.0% in October 2024.” Nish Bhatt, Founder & CEO, Millwood Kane International said that the rise in monthly IIP is a positive development and it was largely helped by a lower base of previous months.