India's industrial production growth decelerated to an 8-month low of 2.4 per cent in November, mainly due to poor showing by the manufacturing sector, according to the official data released on Friday. The factory output growth measured in terms of the Index of Industrial Production (IIP) was 7.6 per cent in November 2022. The previous low of IIP growth was recorded at 1.9 per cent growth in March 2023.
With the news of recession hovering over the horizon, better IIP figures indicate increase in industrial production. It makes investors and stock markets become more optimistic.
Updated new base years for national accounts and other macro-indicators are expected to come into effect from January-February 2026, coinciding with the first and second advance estimates of national income for FY26, senior official sources aware of the development told Business Standard. "The statistics ministry set up the Advisory Committee on National Accounts Statistics (ACNAS) earlier this week. "It will advise on the base year for GDP (gross domestic product) and its alignment with other macro-indicators.
Factory output, as measured by the Index of Industrial Production, contracted in March to a five-year low of 3.5 per cent.
India's industrial production growth slowed to 3.8 per cent in December 2023, mainly due to poor performance of mining and power generation segments, according to official data released on Monday. The factory output growth measured in terms of the Index of Industrial Production (IIP) was at 5.1 per cent in December 2022. In November last year, IIP growth stood at 2.4 per cent.
Historically, the IIP performance has shown little or no correlation to corporate performances.
The IIP growth has been revised downwards to 1.14 per cent for January, from the provisional estimates of 6.8 per cent, according to the official data released on Wednesday.
India's industrial production growth accelerated to 16-month high of 11.7 per cent in October, mainly due to double-digit growth in manufacturing, power and mining sectors' output, according to the official data released on Tuesday. The factory output growth measured in terms of the Index of Industrial Production (IIP) had contracted by 4.1 per cent in October 2022. The previous high of IIP growth was recorded at 12.6 per cent in June 2022.
The absence of any recovery in investment is underlined by the capital goods sector.
Prime Minister's economic advisory panel chief C Rangarajan has described the dip in factory output in September as 'disappointing' and said industry may grow by just 6 per cent in the current fiscal, as against the earlier projection of 7 per cent.
The growth of these core sectors -- coal, crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity -- was 4.6 per cent in April 2023.
Finance Minister Pranab Mukherjee on Friday described the industrial output in December as encouraging and said it would have a positive bearing on the economic growth figures for the current fiscal.
India's industrial production growth slowed marginally to 4.9 per cent month-on-month in March 2024, mainly due to poor show by the mining sector, according to official data released on Friday. The factory output growth, measured in terms of the Index of Industrial Production (IIP), was 5.6 per cent in February 2024. However, it was 1.9 per cent in March 2023.
Capital goods, a barometer of investments, showed a sharp increase in output by 14.6 per cent in January, 2018 as against a decline of 0.6 per cent year ago.
The government has authorised economic think-tank Centre for Monitoring Indian Economy (CMIE) to collect data to be used for compilation of the new series of Index of Industrial Production (IIP).
In terms of industries, 16 out of 23 industry groups in the manufacturing sector have shown positive growth during December 2017 as compared to the same month year ago.
The IIP rate had dipped by 0.4 per cent in November, for the first time since the new series for the IIP was introduced in financial year 1993-94, mainly due to poor performance of manufacturing, which has nearly 80 per cent weight in the index.
The change in the baseline for IIP and WPI, currently at 2004-05, is expected to bring in more accuracy in mapping the level of economic activity and calculating other numbers like national accounts.
Factory output as measured in terms of IIP had grown by 7.3 per cent in December 2017.
Keeping pace with the rapidly changing income and consumption pattern, the government will soon come out with a new Index of Industrial Production (IIP) and develop indices for measuring growth of SSI sector and calculating consumer prices in urban areas.
The overall market breadth was positive as 1,599 stocks advanced against 1,246 declining ones, on the BSE.
India's industrial production growth slowed to 3.8 per cent in January, while the February retail inflation at 5.09 per cent remained within the Reserve Bank's comfort zone for the sixth straight month, according to the latest government data. Growth in factory output, based on the Index of Industrial Production (IIP), slowed to 3.8 per cent in January 2024, mainly due to poor performance of manufacturing, mining and power sectors, according to the data released by the Ministry of Statistics & Programme Implementation.
A big change in the new IIP data, taking 2004-05 as the base year against 1993-94 in the old series, is its classification of items and the weights assigned to these.
The factory output, as measured by the Index of Industrial Production, soared to 16-month high of 8.2 per cent in October on good performance of the manufacturing, power sector and higher output of capital as well as consumer goods, indicating sudden recovery in the economy.
Inflation is expected to be higher in December than 7.48 per cent in November, since food inflation has surged up to 18.32 per cent during the week ended December 25.
Correcting the industrial output figures twice within span of a few hours, the government on Thursday said IIP grew at 2.3 per cent in April instead of 2 per cent reported on Wednesday.
The fall was led by L&T, IndusInd Bank, PowerGrid, NTPC, TCS, ICICI Bank, Axis Bank, Hero MotoCorp, Bharti Airtel and SBI, declining up to 2.64 per cent.
According to the Central Statistics Office data, the jump in the retail inflation based on Consumer Price Index was mainly due to rise in prices of kitchen items like vegetables, meat and fish.
During the month, inflation in vegetables shot up to 35.99 per cent, as against 26.10 per cent in October. Likewise, the prices of cereals and eggs grew at a faster pace of 3.71 per cent.
'Whether I am optimistic or pessimistic is not the issue; I am just going by the evidence available.' 'The Indian economy and financial sector are now well-placed and very resilient in dealing with any kind of spillover coming from the external world.'
Terming sharp revision in the industrial production data as "totally baffling", Finance Minister Pranab Mukherjee on Friday said he has asked the authorities concerned to look into the issue.
BSE market breadth was negative. Out of 2,961 shares traded, 1,907 shares declined while 941 shares advanced.
The growth of eight key infrastructure sectors slowed to 6.7 per cent in February, compared to the same month in 2023, on account of poor performance of some sectors like fertiliser, according to official data released on Thursday. However, the growth rate is higher than January this year.
Despite high headline numbers, the output of one-third of the segments in the manufacturing sector in August stood below even that in the same month in 2011-12, when the new index of industrial production (IIP) series started. This is despite the fact that manufacturing grew 9.3 per cent in the month, driving up IIP growth to a 14-month high of 10.3 per cent. Part of it is due to the devastation of these product categories by lockdowns induced by Covid waves and subdued export conditions, while part of it needs to be assessed further.
The broader markets also ended in the red, after a rally seen in the sectors last week.
The growth of eight key infrastructure sectors slowed to a 14-month low of 3.8 per cent in December 2023, on account of poor performance of sectors like crude oil, electricity, steel and cement, according to the official data released on Wednesday. The core sector (coal, crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity) growth in November was 7.9 per cent. It was 8.3 per cent in December 2022.
India's industrial production growth rose to a 14-month high of 10.3 per cent in August, mainly due to good show by the manufacturing, mining and power sectors, according to the official data released on Thursday. The factory output growth measured in terms of the Index of Industrial Production (IIP) had contracted by 0.7 per cent in August 2022. The previous high was recorded at 12.6 per cent growth in June 2022.
The NSE Nifty is at 5,340 down 22 points. Inspite of two big negative news looming in the market, the index lost around 100 points,owing to the huge FII inflow which kept the sentiments positive.
He is, however, hopeful that impact of recent reforms initiatives will manifest in the data for the second half of the fiscal.
