Industrial production rose slightly to 3.5% in October, from 3.1% in September

In October 2024, industrial production in India, according to the Index of Industrial Production (IIP), increased by 3.5 percent, more than the 3.1 percent recorded in September. According to government data released on December 12, the index rose from 144.9 in October 2023 to 149.9, which reflects the trend in the Indian industry.

October saw the second consecutive increase in industrial activity, following a slight decline in August. Among the major industries, mining rose by 0.9 percent, manufacturing grew by 4.1 percent compared to 3.9 percent last month, and electricity showed a slight growth of 2 percent.

Medium-sized industries, which make up 40 percent of the Index of Industrial Production, also performed well in October. India’s gross domestic product grew by 3.1 percent in October, up from 2.4 percent in September, with four of the eight sectors growing strongly.

Within the manufacturing industry, 18 of the 23 groups in the NIC 2 category have shown positive growth in October 2024 on October 2023. The three best contributors for the month of October 2024 are – “Manufacturing of basic metals” (3.5) %), “Manufacturing of tools electronics” (33.1%) and “Producing coke and refined oil” (5.6%).

“The growth rate of the IIP in October 2024 was the lowest but the highest among the three sectors. The YoY performance of the frequently available indicators showed different trends in November 2024 versus October 2024. transportation and transportation-related trends, were disrupted in November 2024 compared to the previous month , including the registration of motor vehicles, port trucks, and rail vehicles with the help of a good foundation, ICRA expects YoY IIP growth to pick up to a peak of ~5.0-7.0% in November 2024. A look at growth between October and November 2024 would provide a reasonable assessment of performance during this period,” said Aditi. Nayar, Chief Economist and Head – Research & Outreach, ICRA Limited.