The latest monthly government data showed the growth decelerated to 3.84 percent in the month before and was placed at (-)2.7percent in October of last fiscal year.
While the electricity output grew by 9 percent, that in mining was higher by 4.7 percent, the index of industrial production data said
The Central Statistics Office (CSO), which released the data on the IIP, revised its September and July estimates upwards marginally.
Cumulatively, the factory output growth was 4.8 percent between April and October, as against 4 percent in the first six months of this fiscal. This was more than double the figure of 2.2 percent logged during the first seven months of the previous fiscal. The manufacturing sector swelled by 5.1 percent, while the electricity sector expanded by 5.2 percent. The mining sector’s cumulative output in the period under review edged up by 2 percent.
Friday’s data also showed that among the six use-based classifications of the index, the output of capital goods segment expanded by 16.1 percent in October. The capital goods segment is a key indicator of economic activity.
Besides, healthy production was observed in the consumer durables, which rocketed by 42.2 percent. The output of consumer goods was higher by 18.4 percent.
The basic goods segment rose by 4.1 percent, intermediate goods grew by 6.7 percent, and consumer non-durables segment edged up by 4.7 percent.
Overall, 17 out of the 22 industry groups in the manufacturing sector have shown positive growth during the month under review. These included several sectors where SMEs had significant output.
Segment-wise, growth was witnessed in gems and jewellery (372.5 percent), sugar machinery (103.4 percent), telephone instruments (61.5 percent), PVC pipes and tubes (48.5 percent), steel structures (35.5 percent), colour TV sets (34.5 percent), rubber insulated cable (31.3 percent), scooter and mopeds (24.5 percent) and passenger cars (21.4 percent).
Segment-wise, high negative growth was reported in the polythene bags (- 61.8 percent), ship building and repairs (- 46.5 percent), grinding wheels (- 36.3 percent), ready-to-eat (- 29.5 percent), furnace oil (- 25.8 percent) and aviation turbine fuel (- 24 percent).
India Inc. welcomed the substantial rise in the factory output and called for continued push for reform measures to maintain the growth trajectory.
The Associated Chambers of Commerce and Industry of India (ASSOCHAM) said that the industrial growth in October should be considered as a great morale booster for the Indian economy. Its president Sunil Kanoria, the growth in capital goods reflects a revival in investment cycle and a robust expansion of electricity generation follows solid improvement in coal production.
Saurabh Sanyal, Secretary General of PHD Chamber of Commerce and Industry, noted that growth of consumer goods showed a firming-up trend in demand.