Industrial Production Sees Steady Rise in October 2024 with Manufacturing Leading the Way

The Index of Industrial Production (IIP) growth rate reached 3.5% in October 2024, driven by the manufacturing sector's strong showing. Significant growth was noted in the manufacture of electrical equipment, basic metals, and refined petroleum products. Consumer demand remained robust, underlining a balanced recovery in the industrial landscape.

The Index of Industrial Production (IIP) reported a growth rate of 3.5% for October 2024, building on a 3.1% growth in September, according to Quick Estimates released on December 12. The Ministry of Statistics & Programme Implementation provided a diverse sectoral analysis indicating mixed performance across mining, manufacturing, and electricity sectors, with growth rates of 0.9%, 4.1%, and 2.0% respectively.

The manufacturing sector demonstrated remarkable resilience, with 18 out of 23 industry groups at the 2-digit NIC level seeing positive growth compared to October 2023. The overall IIP for October 2024 was pegged at 149.9, rising from 144.9 a year earlier, indicating a steady recovery in industrial activity. This recovery is largely attributed to the manufacturing sector's pivotal role in driving growth.

Noteworthy growth contributors included the "Manufacture of basic metals" at 3.5%, "Manufacture of electrical equipment" at 33.1%, and "Manufacture of coke and refined petroleum products" at 5.6%. Key drivers within basic metals included steel pipes, galvanized products, and mild steel bars, while electric heaters and optical fiber connectors led the electrical equipment category's surge.

In the refined petroleum category, petrol, aviation turbine fuel, and LPG were notable products. Growth based on use classifications showed primary goods at 2.6%, capital goods at 3.1%, intermediate goods at 3.7%, and infrastructure/construction goods rising by 4.0%. Robust consumer demand was evidenced by a 5.9% increase in consumer durables and 2.7% in non-durables, pointing to balanced recovery trends.

The Quick Estimates, based on a 96% weighted response rate, assure high data accuracy. Revisions for September 2024 and final updates for July 2024 further ensure data reliability. Looking ahead, the IIP figures for November 2024 are set for release on January 10, 2025, promising further insights into the industrial output trajectory.

(With inputs from agencies.)