The Business Bytes
New Delhi, November 12, 2024 (TBB Bureau): India’s industrial sector showed robust recovery in September with a 3.1% rise in the Index of Industrial Production (IIP), reversing a 0.1% contraction in August, as per data from the Ministry of Statistics released on Tuesday. The surge underscores renewed momentum in manufacturing, electricity generation, and mining, marking a significant step forward in the country’s economic trajectory.
The manufacturing sector, a crucial pillar of the Indian economy, contributed the lion’s share to this growth with a 3.9% increase year-on-year in September. Manufacturing not only supports economic expansion but also generates numerous employment opportunities for the country’s young graduates, particularly from engineering and technical backgrounds. Leading the growth within the manufacturing sector were industries like ‘Manufacture of coke and refined petroleum products’ (5.3%), ‘Manufacture of basic metals’ (2.5%), and ‘Manufacture of electrical equipment,’ which posted an impressive 18.7% growth.
Electricity generation expanded by 0.5% in September, while mining activities recorded a marginal 0.2% increase, adding to the industrial growth landscape.
In terms of user-based classification, several indicators pointed toward healthy economic activity. Capital goods production, an indicator of investment in machinery and equipment, saw a 2.8% rise, highlighting strong capital investments, which are essential for job creation and income generation. Meanwhile, the consumer durables sector, which includes electronics, refrigerators, and TVs, grew by 6.5%, signaling robust consumer demand and rising disposable incomes. The production of consumer non-durables, which encompasses everyday essentials like soaps and cosmetics, saw a 2.0% increase.
Growth in other key segments such as intermediate goods (4.2%) and infrastructure/construction goods (3.3%) also contributed to the overall industrial uplift, reinforcing the strength of India’s manufacturing ecosystem.
For the April-September period, cumulative industrial production rose by 4%, though this pace is slightly lower than the 6.2% recorded during the same period last year. The industrial sector’s rebound in September is an encouraging sign for policymakers and industry stakeholders alike, signaling a potential upward trend in India’s economic health as the country heads toward the close of the fiscal year.
