India’s industrial production recorded a growth of 3.1% in September 2024, marking a significant rebound from the 0.1% contraction in August. This growth is attributed to a strong performance in manufacturing, alongside modest increases in electricity generation and mining. However, compared to the same month last year, the growth rate has slowed from 6.4% in September 2023, indicating a more tempered industrial recovery.
Key Sectoral Growth
Manufacturing: The manufacturing sector rose by 3.9% in September 2024, contributing significantly to the overall growth. Notable sub-sectors driving this growth include the manufacture of coke and refined petroleum products (5.3%), basic metals (2.5%), and electrical equipment (18.7%).
Electricity Generation: A modest 0.5% increase in electricity generation was reported, showing stable demand in the energy sector.
Mining: Mining activity saw a slight increase of 0.2%, continuing its slow but steady recovery.
Growth Breakdown by Use-Based Classification
Primary Goods: Growth stood at 1.8%, reaching an index of 141.3.
Capital Goods: A growth of 2.8% was recorded, with the index at 115.8.
Intermediate Goods: Leading the charge, this category posted a 4.2% increase, reflecting robust demand in production inputs.
Infrastructure/Construction Goods: A healthy 3.3% growth was seen, suggesting continued activity in infrastructure development.
Consumer Durables: Consumer durables grew by 6.5%, signaling strong consumer demand.
Consumer Non-Durables: This category increased by 2%, contributing to the overall positive trend.
September 2024 IIP Indices
- Manufacturing: 147.0
- Mining: 111.7
- Electricity: 206.9
Comparison with Previous Data
IIP Growth: The IIP growth in the April-September period of 2024 is 4%, lower than the revised 6.2% in the same period last year.
Past Trends: In September 2023, industrial growth was at a robust 6.4%, which has now slowed to 3.1%, reflecting a more cautious industrial environment.
Summery of the News
| Why in News | Key Points |
|---|---|
| India’s Industrial Production Growth in September 2024 | – India’s IIP (Index of Industrial Production) grew by 3.1% in September 2024. |
| – This marked a recovery from the 0.1% contraction in August 2024. | |
| – Manufacturing led with a 3.9% increase in output. | |
| – Electricity generation rose by 0.5%, and mining activity grew by 0.2%. | |
| Sectoral Growth (September 2024) | – Manufacturing: 3.9% growth. |
| – Electricity: 0.5% growth. | |
| – Mining: 0.2% growth. | |
| Use-based Classification Growth (September 2024) | – Primary goods: 1.8% growth. |
| – Capital goods: 2.8% growth. | |
| – Intermediate goods: 4.2% growth. | |
| – Infrastructure goods: 3.3% growth. | |
| – Consumer durables: 6.5% growth. | |
| – Consumer non-durables: 2% growth. | |
| IIP Indices for Key Sectors (September 2024) | – Manufacturing: 147.0 |
| – Mining: 111.7 | |
| – Electricity: 206.9 | |
| Key Contributors to Manufacturing Growth (Sept 2024) | – Coke and refined petroleum products: 5.3% growth. |
| – Basic metals: 2.5% growth. | |
| – Electrical equipment: 18.7% growth. | |
| IIP Growth in April-September 2024 | – Overall IIP growth: 4.0% (lower than 6.2% in the same period of 2023). |
| Previous Year Comparison | – IIP growth in September 2023 was 6.4%. |
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