India's Industrial Output Surges with 3.1% Growth in September

In September 2024, India's Index of Industrial Production (IIP) rose by 3.1%, signaling a strong performance in several key sectors. This growth marks a rebound from a -0.1% contraction in August, with manufacturing leading the charge and significant contributions from Intermediate and Consumer Durables segments.

India's industrial landscape showcased a notable upswing in September 2024, as the Index of Industrial Production (IIP) registered a growth rate of 3.1%, according to the Ministry of Statistics & Programme Implementation. This development represents a recovery from the previous month's slight downturn of -0.1% recorded in August.

The IIP ascended to 146.7, up from 142.3 in September 2023, with manufacturing spearheading this resurgence. Mining, Manufacturing, and Electricity sectors presented mixed results: Mining rose by a modest 0.2%, Manufacturing surged by 3.9% playing a pivotal role in driving industrial growth, while Electricity grew by 0.5%.

Within manufacturing, significant gains were noted in the "Manufacture of coke and refined petroleum products" which increased by 5.3%, "Manufacture of basic metals" up by 2.5%, and an impressive 18.7% spike in "Manufacture of electrical equipment." The use-based classification revealed an upturn across segments: Primary Goods rose by 1.8%, Capital Goods by 2.8%, and Intermediate Goods led with 4.2%. Infrastructure, Construction Goods, and Consumer Durables surged, with the latter recording the highest growth at 6.5%.

The latest IIP data highlights Intermediate Goods, Consumer Durables, and Primary Goods as leading contributors to this positive trend, indicating robust consumer and industrial demand. The data, updated with inputs from various agencies, underwent a thorough revision. The indices for August and June 2024 saw updates, achieving weighted response rates of 91%, 94%, and 96%. The subsequent IIP report for October 2024 is slated for a December 12 release.

(With inputs from agencies.)