New Delhi: India’s industrial production (IIP) growth slowed to 3.5 per cent year-on-year in October 2024, mainly due to poor performance of mining, power and manufacturing, as per official data released on Thursday.
The IIP recorded a growth of 11.9 per cent in October 2023, according to a statement by the Ministry of Statistics & Programme Implementation. However, on a sequential basis, the factory output in October 2024 rose to 3.5 per cent from 3.1 per cent in September and a contraction of 0.1 per cent in August this year.
The growth in the factory output, measured in terms of the IIP, in April-October worked out to be 4 per cent against 7 per cent in the year-ago period, the data showed. As per the data, the mining output growth decelerated to 0.9 per cent in October from 13.1 per cent expansion in the year-ago month.
Analysis of Key Factors Contributing to India’s IIP Slowdown
The manufacturing sector’s growth decelerated to 4.1 per cent in October from 10.6 per cent a year ago. Similarly, in power generation, the output growth slowed sharply to 2 per cent from a 20.4 per cent growth a year ago.
As per use-based classification, the capital goods segment growth decelerated to 3.1 per cent in October 2024 from 21.7 per cent in the year-ago period.
In October this year, consumer non-durables output growth slowed to 2.7 per cent compared to a 9.3 per cent growth in October 2023. Consumer durable goods production grew by 5.9 per cent during the reporting month against a 15.9 per cent expansion in October 2023.
According to the data, infrastructure/construction goods reported a growth of 4 per cent in October 2024, down from a 12.6 per cent expansion in the year-ago period. The data also showed that the output of primary goods logged a 2.6 per cent growth in October this year against 11.4 per cent a year earlier.
The expansion in the intermediate goods segment was 3.7 per cent in the month under review, lower than the 9.5 per cent a year ago.
India’s Index of Industrial Production (IIP) witnessed a significant slowdown in October 2024, registering a mere 3.5% year-on-year growth. This decline is primarily attributed to weak performance across key sectors like mining, power, and manufacturing. Compared to the robust 11.9% growth in October 2023, the latest figures highlight a concerning trend. Economy Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
