NEW DELHI: The country’s industrial output grew its fastest in almost five years at 9.8 per cent led by growth in manufacturing and electricity sectors, which grew 10.6 per cent and 9 per cent, respectively, according to the official data released on Friday.
The index of industrial production (IIP) rose 9.8 per cent during the month, compared with 3.8 per cent in September (revised from 3.6 per cent). “In terms of industries, 17 out of the 22 industry groups in the manufacturing sector have shown positive growth during the month of October 2015 as compared to the corresponding month of the previous year,” an official release said on Friday.
During the first seven months of the current financial year, IIP rose 4.8 per cent, compared with 2.2 per cent in the corresponding period of last financial year.
In October, manufacturing rose 10.6 per cent, electricity nine per cent, and mining 4.7 per cent. The rise was mainly because of high 42.2 per cent growth seen in consumer durables, and 16.1 per cent expansion in capital goods.
Indranil Pan, chief economist, IDFC says, “the uptick in the number led by the capital goods sector, which is seeing an upward trend on back of government spending.
Meanwhile, for November the number would come in lower at around 4.5-5 per cent because of loss of production seen in the month due to festival and some impact of Chennai floods on production, which could also flow through into December number.”
Manufacturing grew 9.3 per cent, compared with 7.2 per cent in the previous quarter, and 7.9 per cent in the same period last year.
While capital goods production rose 16.1 per cent in the month, the overall growth in consumer goods was 18.4 per cent. Among consumer goods, it was the consumer durables production that rose a sharp 42.2 per cent on year.