Industrial production rose marginally to 3.5% in October, compared to 3.1% in September

In October 2024, India’s industrial output, as measured by the industrial production index, grew by 3.5%, exceeding the 3.1% recorded in September. According to official data released on December 12, the index rose from 144.9 in October 2023 to 149.9, indicating a positive trend in India’s industrial sector.

October saw the second consecutive increase in industrial production, after a slight decline in August. Among the major industries, mining saw a rise of 0.9 percent, manufacturing grew by 4.1 percent compared to 3.9 percent in the previous month, and electricity showed a modest growth of 2 percent.

Primary sector industries, which make up 40 percent of the industrial production index, also performed well in October. India’s primary sector output expanded 3.1 per cent in October, up from a revised 2.4 per cent in September, with four out of eight sectors seeing accelerated growth.

Within the manufacturing sector, 18 industry groups out of 23 at NIC 2 level recorded positive growth in October 2024 compared to October 2023. The three largest positive contributors for October 2024 are – “Basic Metals Industry” (3.5%), “Electrical Equipment Industry” (33.1%), and “manufacture of coke and refined petroleum products” (5.6%).

“The uptick in IDI growth in October 2024 was slight albeit broad across the three sectors. The annual performance of the available high-frequency indicators showed a mixed trend in November 2024 versus October 2024. The performance of some of the mobility and transport-related indicators deteriorated in November 2024 compared to the previous month.” , including vehicle registration, port cargo movement, and rail freight movement, supported by the improving base, ICRA expects IIP growth to accelerate YoY to a more acceptable level of 5.0-7.0% in November 2024. However, with the shift in the festive season overshadowing YoY growth rates, we believe that given the average growth performance for October, Aditi Nayar said. “November 2024 will provide a more useful assessment of activity during this period,” said Chief Economist and Head of Research and Outreach, ICRA Limited.