Industrial production rose marginally to 3.2 per cent in October 2021, government data showed on Friday, December 10, as a result of waning low base effect for the second straight month. The index of industrial production (IIP) in October stood at 133.7. The industrial production index during the April-August period of the current fiscal grew 20 per cent, compared to a de-growth of 17.3 per cent in the year-ago period.
The indices for the mining, manufacturing, and electricity sectors for October 2021 stand at 109.7, 134.7, and 167.3, respectively, according to the industrial production data released by the Ministry of Statistics and Programme Implementation today.
Industrial production - or the factory output, gauged by the industrial production index, slipped to 3.2 per cent in October, compared to 4,5 per cent in the year-ago period.
The manufacturing sector, which comprises 77.63 per cent of the index of industrial production, grew two per cent in October, compared to 4.5 per cent in the year-ago period. The mining output climbed 11.4 per cent, compared to a de-growth of one per cent in October 2020.
The output of capital goods - a barometer of investment, registered a de-growth of 1.1 per cent in October, compared to a growth of 3.2 per cent in October 2020. Consumer durables registered a de-growth of 6.1 per cent, compared to a growth of 18.1 cent in the year-ago period.
"The October industrial production has slowed down on MoM & YoY basis, despite other indicators showing a recovery. The October IIP at 3.2 per cent is below most estimates. The growth in IIP has been erratic and it slowing down despite October being a festive season month. This puts some doubts about the economic recovery that is underway.
Most constituents have shown de-growth like electricity, manufacturing, infra goods, consumer durables, consumer non-durables with mining and primary goods the only exception. The chip shortage has been a cause of concern for the smooth functioning of industrial activities across the globe.
The auto sector has seen the most disruption. The H1 IIP at 20 per cent is largely a factor of a lower base. The industrial data need to clock in regular double-digit growth for sustained overall economic growth,'' said Mr. Nish Bhatt, Founder & CEO, Millwood Kane International.