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India’s industrial production growth expands by 1.4% in November

13 Jan 2022 Evaluate

With the waning low base effect, India’s industrial production growth remained subdued for the third straight month and expanded by 1.4 per cent in November. The IIP had contracted by 1.6 per cent in November 2020. For the month of November 2021, the Quick Estimates of Index of Industrial Production (IIP) with base 2011-12 stood at 128.5 compared to 126.7 points in the same month in 2020. The index stood at 128.8 points in November 2019. During April-November this year, the IIP grew 17.4 per cent against a 15.3 per cent contraction in the same period last year.

The manufacturing sector, which constitutes 77.63 per cent of the Index of Industrial Production (IIP), grew 0.9 per cent in November. The manufacturing sector had recorded a contraction of 1.6 per cent in November 2020. The mining sector output rose five per cent in November, while power generation increased 2.1 per cent. The mining sector output shrank 5.4 per cent in the same month. The electricity generation had grown by 3.5 per cent in November 2020. The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of November 2021 stood at 111.9, 129.6 and 147.9 respectively.

The output of capital goods, which is a barometer of investment, contracted by 3.7 per cent in November 2021. It had witnessed a contraction of 7.5 per cent in the year-ago period. Consumer durables manufacturing shrank 5.6 per cent in the month under review against a decline of 3.2 per cent in November 2020. Consumer non-durable goods production grew 0.8 per cent in November 2021 against a 0.7 per cent contraction in the year-ago period. As per Use-based classification, the indices stood at 126.5 for Primary Goods, 81.2 for Capital Goods, 141.8 for Intermediate Goods and 142.5 for Infrastructure/ Construction Goods for the month of November 2021.  Further, the indices for Consumer durables and Consumer non-durables stood at 106.7 and 150.3 respectively for the month November 2021.

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