New Delhi, Nov 10 (Mayank Nigam) India’s index of industrial production (IIP) rose 5.8% year-on-year in September this year on the back of a surge in mining and electricity sector output, as per data released by Ministry of Statistics & Programme Implementation (MoSPI) on Friday. The MoSPI data showed mining sector output jumped 11.5% in September this year while electricity production recorded 9.9% year-on-year growth. Manufacturing sector output increased 4.5% during this period. Industrial production had recorded 10.3% year-on-year growth in August, 2023.
Commenting on September IIP numbers, ICRA Chief Economist Aditi Nayar said that an unfavorable base, a shift in the festive calendar and excess rainfall caused the year-on-year (YoY) growth in the Index of Industrial Production (IIP) to nearly halve to a lower-than-expected 5.8% in September 2023. “While the moderation was broad-based across all sub-sectors and use-based categories, the performance of consumer goods was especially tepid at +1.0% and +2.7%, respectively, for durables and non-durables, resulting in the manufacturing sector’s performance trailing that of mining and electricity in September 2023,” she said. The IIP grew by 6% in April-September period of FY23. “Looking ahead, the YoY performance of a majority of the available high frequency indicators improved in October 2023, relative to September 2023. Consequently, ICRA expects the YoY IIP growth to improve to 7-10% in that month, boosted by a favourable base for some sectors owing to the early onset of festive season in 2022 and the relatively fewer working days in October 2022. However, we expect fewer working days to dampen IIP growth in November 2023,” stated ICRA chief economist.