India’s Industrial Output Grows 3.1% in September 2024

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%.