India's IIP growth races to 5-year high of 9.8%: How it became possible

Zee Media Bureau

New Delhi: Riding on the back of a robust growth in consumer products and capital goods during the Diwali season, India's industrial output grew at five-year high rate of 9.8 percent in October.

The latest IIP figure marks a significant rebound from 3.84 percent growth recorded in September 2015 and a contraction of 2.7 percent in October last year. The previous high in the index of industrial production (IIP) was in October 2010 at 11.36 percent.

Here are the key factors of  October IIP jump: 

-The manufacturing sector, a key indicator of economic activity, grew 10.6 percent year-on-year in October.

-The growth in the consumer durables segment was a whopping 42.2 percent in October over the same month last year. While, the consumer goods category saw a growth of 18.4 percent and consumer non-durables rose by 4.7 percent.

-The data further showed that capital goods segment grew 16.1 percent while the expansion in basic goods came in at 4.1 percent. What is even more pleasing is a huge 16.1 percent growth in capital goods, reflecting revival in investment cycle and a robust expansion of 9 percent in electricity generation, which follows solid improvement in coal production.

-Growth in mining sector was up 4.7 percent.

-Consumer non-durables output expanded by 4.7 percent, while the expansion in basic goods came in at 4.1 percent in the month.

-Some of the important items showing a high positive growth in October on an annual basis include gems and jewellery (372.5 percent), sugar machinery (103.4 percent), and telephone instruments, including mobile phones and accessories (61.5 percent).