Factory output growth gathers momentum

NEW DELHI: India’s industrial output grew at an 11-month high of 8.1 per cent in October mainly on the back of mining, power and manufacturing sectors coupled with higher offtake of capital as well as consumer durable goods.Industrial production measured in terms of Index of Industrial Production (IIP) grew 1.8 per cent in October last year, data from the Central Statistics Office (CSO) on Wednesday.

The previous high IIP growth rate was recorded in November last year at 8.5 per cent. The growth for September remained unchanged at 4.5 per cent compared to provisional data released last month. During the April-October period, industrial output grew 5.6 per cent as compared to 2.5 per cent in the same period of the previous fiscal.Manufacturing sector, which constitutes 77.63 per cent of the index, recorded 7.9 per cent growth in October as against 2 per cent year ago. Mining sector posted 7 per cent growth during the month as against a contraction of 0.2 per cent in October 2017.

The power sector output also grew by 10.8 per cent in the month compared to 3.2 per cent a year ago.The capital goods sector saw a 16.8 per cent output growth in the month, up from 3.5 per cent a year ago. Consumer durables expanded at 17.6 per cent as compared to a contraction of 9 per cent a year earlier.In terms of industries, 21 out of 23 industry groups in the manufacturing sector have shown positive growth during October 2018.

As per the use-based classification, the growth rates in October 2018 over October 2017 are 6.0 per cent in primary goods, 1.8 per cent in intermediate goods and 8.7 per cent in infrastructure/construction goods.The consumer non-durables have recorded growth a 7.9 per cent growth.

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