Factory output growth hits 17-month high of 8.4% in November
New Delhi:Industrial production growth zoomed to a 17-month high of 8.4% in November 2017 on the back of robust performance of manufacturing and capital goods sectors.
The factory output, measured in terms of Index of Industrial Production (IIP), grew 5.1% in November 2016, as per data released on Friday by the Central Statistics Office (CSO).
The previous high was recorded at 8.9% in June, 2016. Meanwhile, the IIP growth for October 2017 has been revised downwards to 2% from the provisional estimates of 2.2 released last month.
Manufacturing sector, which constitutes 77.63% of the IIP, recorded an impressive growth of 10.2% in November as compared to 4% a year ago.
The industry group ‘Manufacture of pharmaceuticals, medicinal chemical and botanical products’ has shown the highest positive growth of 39.5%, followed by 29.1% in computer, electronic and optical products and 22.6% in ‘manufacture of other transport equipment’.
Capital goods output, which is a barometer of investment, grew by 9.4% in November as against 5.3% a year ago. Consumer non-durables, which are mainly fast moving consumer goods (FMCG), showed an output growth of 23.1% as against 3.3% in November 2016.
However, the mining sector production growth slowed to 1.1% from 8.1% a year ago.
Electricity generation growth too slowed to 3.9% in November from 9.5% in the corresponding month a year ago.
Production growth of consumer durables, mainly white goods like TVs, refrigerators and washing machines, also slowed to 2.5% from 6.8%.
As per use-based classification, the growth rates in November 2017 are 3.2% in primary goods, 5.5% in intermediate goods and 13.5% in infrastructure/ construction goods.
In terms of industries, 15 of the 23 industry groups in the manufacturing sector have shown positive growth during November 2017 as compared to the same month a year ago.