NEW DELHI: In a double whammy to the economy, India’s industrial output growth plummeted to an eight-month low of 2.4% in November 2023 — down from the previous month’s 16-month high of 11.6% — while retail inflation rose to a four-month high at 5.69% in December.
The fall in industrial output was largely due to the poor performance of the manufacturing sector, whose output growth dropped to a seven-month low of 1.2% in November. In the same month, consumer durables production saw a sharp decline of 5.4%, marking its lowest output since the peak of the second Covid wave in June 2021. Similarly, electricity generation in November dwindled to its lowest level since February, a stark contrast to the 20.4% surge in October.
Of the 23 manufacturing segments, only six grew in November. Among the segments that showed notable growth were coke and refined petroleum products (14.2%), other transport equipment (9.8%), and motor vehicles (9.2%).
Though retail inflation was high in December 2023, it remained within the Reserve Bank’s upper limit of 6% for the fourth straight month. The rise in retail inflation was driven by food articles, despite a deceleration in prices of cereals and vegetables compared to the previous month. The overall food prices continued to rise. Food inflation spiked to 9.53% in December 2023, up from 8.70% in the previous month.