In October 2024, India’s industrial output, as measured by the Index of Industrial Production (IIP), witnessed a growth of 3.5 per cent, surpassing the 3.1 per cent recorded in September. According to official data released on December 12, the index rose from 144.9 in October 2023 to 149.9, indicating a positive trend in India’s industrial sector.
October saw a second consecutive increase in industrial output, following a slight decline in August. Among the major industries, mining saw a 0.9 per cent rise, manufacturing grew by 4.1 per cent compared to the previous month’s 3.9 per cent, and electricity showed modest growth of 2 per cent.
The core sector industries, which make up 40 per cent of the Index of Industrial Production, also performed well in October. India’s core sector output expanded by 3.1 per cent in October, up from a revised 2.4 per cent in September, with four out of eight sectors experiencing accelerated growth.
Within the manufacturing sector, 18 out of 23 industry groups at the NIC 2-digit level have recorded a positive growth in October 2024 over October 2023. The top three positive contributors for the month of October 2024 are – “Manufacture of basic metals” (3.5%), “Manufacture of electrical equipment” (33.1%) and “Manufacture of coke and refined petroleum products” (5.6%).
“The uptick in the IIP growth in October 2024 was mild albeit broad-based amongst the three sectors. The YoY performance of the available high-frequency indicators displayed a mixed trend in November 2024 vis-à-vis October 2024. The performance of some of the mobility and transport-related indicators, deteriorated in November 2024 vis-à-vis the previous month, including vehicle registrations, ports cargo traffic, and rail freight traffic. Aided by the favourable base, ICRA anticipates the YoY IIP growth to accelerate to a much more palatable ~5.0-7.0% in November 2024. However, with the shift in the festive season clouding the YoY growth rates, we believe that looking at the average growth performance for October-November 2024 would provide a more meaningful assessment of activity during this period,” said Aditi Nayar, Chief Economist and Head – Research & Outreach, ICRA Limited.
