NEW DELHI: The country’s industrial output growth rose at its fastest pace in six months in November, led by manufacturing and a statistical base effect while capital goods and consumer durables, infrastructure and construction goods added strength to the numbers.
Data released by the National Statistical Office (NSO) on Friday showed the index of industrial production (IIP) rose 5.2 per cent in Nov, higher than an upwardly revised 3.7 per cent in Oct and above the 2.5 per cent recorded in Nov last year.
The manufacturing sector rebounded, rising 5.8 per cent in Nov above the 1.3 per cent in the same month a year earlier and 4.4 per cent in Oct. The capital goods sector, a key gauge of investment activity, rose 9 per cent in Nov compared to a contraction of 1.1 per cent in Nov last year. The consumer durables sector rose 13.1 per cent in Nov, led by the festive season demand, compared with a contraction of 4.8 per cent in Nov 2023. The consumer non-durables sector remained sluggish, rising 0.6 per cent during the month compared with a contraction of 3.4 per cent in Nov last year.
“Broad-based improvement in the manufacturing, electricity and mining output supported the overall IIP growth. The sustained improvement in industrial activity is positive following the temporary blip in Aug 2024,” said Rajani Sinha, chief economist at ratings agency CareEdge.
“On the consumption front, the signals were mixed with growth in consumer durable goods being propped up by a supportive base while growth in consumer non-durables output decelerated. Broad-based improvement in the consumption scenario remains critical,” said Sinha.
