Industrial output growth at 2-year high of 6.7% in Nov
Mumbai, Dec. 30 -- India's industrial activity rebounded sharply in November, with the Index of Industrial Production (IIP) rising 6.7% year on year, driven by a strong recovery in manufacturing output, data released by the National Statistical Office (NSO) on Monday showed.
The November print marks a sharp turnaround from the 0.5% growth recorded in October. The growth in the index is also the highest since October 2023, when it recorded a growth of 11.9%.
Manufacturing, which carries the highest weight of 77.6% in the index, expanded 8% in November compared to 2% in October, supported by robust output in basic metals, pharmaceuticals and motor vehicles. Mining output also picked up, growing 5.4% after the end of the monsoon season and stronger production of metallic minerals. The sector had contracted for two preceding months. Electricity generation, however, remained a drag, contracting 1.5% during the month. However, the contraction in November was less than the 6.9% contraction recorded in October.
"India's IIP growth accelerated sharply by 6.7% in November, highest in almost two years. The better-than-anticipated growth was supported by a healthy momentum and some support from a relatively low base of last year. Sharp growth uptick seen in the manufacturing sector and a turnaround in mining sector performance supported the overall IIP growth," said Rajani Sinha, chief economist at CareEdge Ratings....
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