Industrial production grows 5.7% in November year-on-year; manufacturing, mining sectors shine

Backed by growths in mining, manufacturing and electricity sectors, industrial outputs grew 5.7 percent in the month of November compared to the contraction of 3.4 percent in the same month in 2015.

New Delhi: Shrugging off fears of a slowdown due to the demonetisation move, India's industrial production for the month of November grew by 5.7 percent against a contraction of 3.4 percent in the same month in 2015.

Following the demonetisation move by the government in November, it was highly expected that the industrial productions for the month would contract.

However, backed by growths in mining, manufacturing and electricity sectors, factory output, as measured in terms of the Index of Industrial Production (IIP), grew 5.7 percent in the month of November compared to the contraction of 3.4 percent in the same month in 2015.

In October, the industrial production had also contracted by (-)1.9 percent mainly due to poor show by manufacturing and mining sectors coupled with decline in capital goods output.

As per the data released by the Central Statistic Office, the cumulative growth for the period April-November 2016 over the corresponding period of the previous year stands at 0.4 percent.

Manufacturing sector, which constitutes over 75 percent of the index, grew at 5.5 percent in November compared to a decline in output by 4.6 percent earlier.

However, during the April-November period the sector recorded a contraction of 0.3 percent compared to a growth of 3.9 percent.

Similarly, electricity generation grew at 8.9 percent in November compared to a meagre 0.7 percent a year ago. Mining output grew 3.9 percent in November compared to 1.7 percent same month a year ago.

Capital goods production increased by 15 percent in November compared to a decline in production by 24.4 percent earlier.

As per use-based classification, growth rates in November 2016 over November 2015 are 4.7 percent in basic goods and 2.7 percent in intermediate goods.

Consumer durables and consumer non-durables recorded growth of 9.8 percent and 2.9 percent respectively, with the overall growth in consumer goods being 5.6 percent.

In terms of industries, 16 out of 22 industry groups in the manufacturing sector have shown growth during the month of November 2016 as compared to the corresponding month of the previous year.

Meanwhile, India's retail inflation eased further to a 3-year low of 3.41 percent in December due to alling prices of vegetables and pulses in the wake of cash crunch following the demonetisation move.

With PTI Inputs