Making modest recovery, Industrial output turns positive on account of growth in manufacturing sector

New Delhi, January 11: Noting the industrial output to grow at 1.8 per cent in November last year, the data revealed by the National Statistical Office on Friday affirmed tha the growth in the manufacturing sector turned positive after almost three months of contraction.

 

 

According to National Statistical Office data released yesterday, the growth in the manufacturing sector was 2.7 per cent as against a contraction of 0.7 per cent in November 2018. The Index of Industrial Production (IIP) had grown by 0.2 per cent in November 2018.

 

"In November 2019, Electricity generation turned negative 5 per cent as against a growth of 5.1 per cent in November 2018. Mining sector output decelerated to 1.7 per cent from 2.7 per cent in the year ago month. The IIP growth during April-November period of the current fiscal came in at 0.6 per cent, down from 5 per cent in the same period of 2018-19", the data read.

 

Available data suggests the growth of mining output would strengthen in December 2019, while the pace of contraction in electricity generation would narrow, thereby supporting the overall performance of the IIP. Waning favourable base effect could, however, result in manufacturing, as well as the overall IIP, reverting to a disappointing contraction in December 2019.