India’s industrial output growth drops to four-month low of 3.2% in December-OxBig News Network

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India’s industrial output growth dropped to a four-month low of 3.2% in December, with manufacturing and mining sectors rising just 3% and 2.6%, respectively, and consumer non-durables’ production slipping 7.6% from a year ago.

The National Statistics Office (NSO) also downgraded the industrial production growth assessment for November 2024 to 5% from 5.2% estimated earlier. Despite the weaker growth number relative to the previous month and December 2023, when factory output had risen 4.4%, the Index of Industrial Production (IIP) was at a nine-month high.

At 157.3 points, the IIP was 6.1% over November, and reflected the strongest output levels in financial year 2024-25. The Manufacturing as well as the Mining sectors recorded their best index reading this year.

Electricity generation was up 6.2% year-on-year and 4.7% over November 2024 levels.

Five of six industrial segments based on the end-use of products recorded an uptick in December, led by capital goods (up 10.3%) and consumer durables (8.3%). Infrastructure and construction goods rose 6.3, while intermediate goods and primary goods grew 5.9% and 3.8%, respectively.

Consumer non-durables remained a worry, with production shrinking 7.6% in December and the mere 0.6% growth estimated for November being revised downward to 0.4%. However, absolute output levels were at an 11-month high in December and 5.1% over November.

Within manufacturing, 16 of 23 industry groups recorded growth in December, with electrical equipment (up 40.1%), basic metals (up 6.7%), and coke and refined petroleum products (rising 3.9%), making the most significant contribution to growth. Based on end-use classification, the top three contributors to growth in December were primary, intermediate and infrastructure/construction goods.