NEW DELHI: The Index of Industrial Production (IIP) grew at a five-month high of 3.8 per cent in November as manufacturing and mining that were dragging the growth down showed some improvement besides some improvement in capital goods sector.
The factory output declined by 1.3 per cent in the same period last year. Overall, 16 of the 22 industry groups in manufacturing showed positive growth in November.
For the April-November period of the ongoing fiscal, IIP is up 2.2 per cent, as against 0.1 per cent in same period of last fiscal.
Manufacturing output, that constitutes over 75 per cent to the index, grew by 3 per cent in November, compared to a decrease of 2.6 per cent in the same month a year ago, according to government data released on Monday.
For April to November, the sector saw an output growth of 1.1 per cent, compared to a contraction 0.4 per cent in the year-ago period.
Mining sector output grew by 3.4 per cent in November, compared to a growth of 1.6 per cent. During the April-November period, the production has grown by 2.5 per cent, compared to a contraction of 2.1 per cent during the first eight months of last fiscal.
Meanwhile, capital goods production, a barometer of demand, grew by 6.5 per cent in November, as against a growth of 0.1 per cent in same month of last year.
During the April-November period, capital goods output grew by 4.9 per cent as against a dip in production by 0.1 per cent.
The IIP data also revealed a 10 per cent growth in electricity generation in November compared to a growth of 6.3 per cent in the same month last year.
In the April-November period, electricity production was also up 10.7 per cent, compared to a growth of 5.4 per cent in the same period of last fiscal.
The consumer goods output declined by 2.2 per cent in November as against a dip in output at 8.9 per cent logged a year ago.
CII Director General Chandrajit Banerjee, reacting on the IIP data, said, “We hope that going forward, the incipient signs of revival would transform into a firm recovery especially as there is some progress in investment intentions and business confidence is on the ascendant.”