The industrial production in October jumped to a more than five-year high on the back of smart turnaround in manufacturing and electricity sector output.
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The Index of Industrial Production (IIP) grew 9.8 per cent in November from a year earlier, close to the highest forecast of 9.9 per cent by a recent VCCircle survey but missing VCCircle median of 6.75 per cent on the basis of inputs from 17 economists.
Basic goods production increased by 4.1 per cent in October while sector recorded 4.1 per cent growth while capital goods production grew 16.1 per cent production of intermediate goods expanded by 6.7 per cent in October.
The IIP growth for September has been revised upwards to 3.84 percent while it was -2.7 percent in October 2014.
The cumulative growth for the period April-October 2015-16 over the corresponding period of the previous year stands at 4.8%, it said.
Government data shows manufacturing output rose 10.6 per cent in October while mining was up 4.7 per cent and electricity rose 9 per cent. Within consumer goods, the production of consumer durables shot up 42.2%, while that of consumer non-durables also improved 4.7% in October 2015. Meanwhile, the output of capital goods posted double-digit growth for fourth straight month at 16.1%.
Analysts were sanguine about a similar expansion in the third quarter (October-December) economic growth numbers after a sustained performance in manufacturing sector.
Saurabh Sanyal, secretary general of PHD Chamber of Commerce and Industry, noted that growth of consumer goods showed a firming-up trend in demand.
The industry group “Furniture; manufacturing n.e.c.’ showed the highest growth of 138.9%, followed by 48.4% in “Office, accounting & computing machinery” and 47.5% in “Radio, TV and communication equipment & apparatus”.
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On the other hand, the industry group “publishing, printing and reproduction of recorded media” has shown the highest negative growth of (-)10.2 per cent, followed by (-) 6.8 per cent in “medical, precision and optical instruments, watches and clocks” and (-) 2.9 per cent in “coke, refined petroleum products and nuclear fuel”.
