New Delhi : Belying fears of a slowdown due to demonetisation, industrial production in November grew by 5.7 per cent compared to a contraction of 3.4 per cent in the same month a year ago. Factory output measured in terms of Index of Industrial Production (IIP) got a push in November 2016 due to better performance of manufacturing, mining and electricity sectors coupled with larger offtake of capital goods, considered a barometer of investment, reports PTI.
Following demonetisation of Rs 1,000 and Rs 500 notes announced on November 8, 2016, it was feared that cash crunch will hit all sectors. According to data released by the Central Statistics Office, IIP for the month of October last year was revised slightly upwards to a contraction of 1.8 per cent from provisional estimates of (-) 1.9 per cent released last month.
As per the data, IIP growth during April-November period this fiscal remained almost flat at 0.4 per cent compared to 3.8 per cent a year ago. Manufacturing sector, which constitutes over 75 per cent of the index, grew at 5.5 per cent in November compared to a decline in output by 4.6 per cent earlier. However, during the April-November period the sector recorded a contraction of 0.3 per cent compared to a growth of 3.9 per cent. Similarly, electricity generation grew at 8.9 per cent in November compared to a meagre 0.7 per cent a year ago. Mining output grew 3.9 per cent in November compared to 1.7 per cent same month a year ago. Capital goods production increased by 15 per cent in November compared to a decline in production by 24.4 per cent earlier.
