India’s industrial output growth slowed to 3.5% in October 2024, a sharp drop from 11.9% recorded in the same month last year. The Index of Industrial Production (IIP) for October 2024 stood at 149.9, up from 144.9 in October 2023. The slowdown was driven by weaker performance in the mining, electricity, and manufacturing sectors, as per data released by the Ministry of Statistics.
Sectoral Performance
Manufacturing Growth: The manufacturing sector grew by 4.1% in October 2024, compared to 10.6% in October 2023. Positive growth was recorded in 18 out of 23 industry groups, with notable contributors including:
- Basic metals: 3.5% growth
- Electrical equipment: 33.1% growth
- Coke and refined petroleum products: 5.6% growth
Within basic metals, pipes, galvanised products, and mild steel bars led the segment. Electrical equipment growth was driven by electric heaters, small transformers, and optical fibre connectors.
Mining and Electricity: Mining expanded marginally by 0.9%, while electricity grew by 2.0%.
Use-Based Classification
All segments under the use-based classification showed growth:
- Infrastructure/construction goods: 4.0%
- Consumer durables: 5.9%
- Consumer non-durables: 2.7%
- Capital goods: 3.1%
- Intermediate goods: 3.7%
- Primary goods: 2.6%
Year-to-Date Trends
From April to October 2024, industrial output rose by 4.0%, down from 7.0% in the same period the previous year. Revised estimates for September 2024 and final figures for July 2024 were released, with response rates of 94% and 91%, respectively.
Employment and Economic Implications
The manufacturing sector, contributing over three-fourths to the IIP, plays a crucial role in generating employment, especially for engineering graduates. Growth in capital goods, a key investment indicator, suggests potential multiplier effects on jobs and income in the future.
Outlook
The industrial growth rate for November 2024 will be released on January 10, 2025. The October data underscores the need to monitor sectoral performances closely to sustain economic recovery and growth momentum.
Summary of the news
| Why in News | Key Points |
|---|---|
| India’s Industrial Output Growth Slows to 3.5% in October 2024 | – IIP Growth: 3.5% in October 2024, down from 11.9% in October 2023 |
| – Manufacturing Sector Growth: 4.1% in October 2024 (down from 10.6% in October 2023) | |
| – Mining Sector Growth: 0.9% | |
| – Electricity Sector Growth: 2.0% | |
| – Positive Growth in 18 of 23 Manufacturing Groups | |
| – Key Contributors: Basic metals (3.5%), Electrical equipment (33.1%), Coke and refined petroleum products (5.6%) | |
| – Use-based classification growth: Consumer durables (5.9%), Capital goods (3.1%), Infrastructure goods (4.0%) | |
| – IIP stood at 149.9 in October 2024, up from 144.9 in October 2023 | |
| – Year-to-date (April-October) IIP Growth: 4%, down from 7% last year | |
| Sector-wise Key Data | – Manufacturing: 4.1% |
| – Mining: 0.9% | |
| – Electricity: 2.0% | |
| – Infrastructure goods: 4.0% | |
| – Consumer durables: 5.9% | |
| – Capital goods: 3.1% | |
| Official Data Released | – Ministry of Statistics, IIP Data Release |
| Future Data Release | – November 2024 IIP Data: Scheduled for January 10, 2025 |
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