Factory output turns positive, rises 3.1% in Sept

New Delhi: India’s industrial production grew by 3.1 per cent in September, rebounding from a contraction in the previous month, as key sectors—mining, manufacturing, and power generation—showed signs of recovery.

However, the growth in the Index of Industrial Production (IIP) for the month was notably lower than the 6.4 per cent recorded in September 2023.

In August, factory output had slipped into negative territory, declining by 0.1 per cent, primarily due to disruptions in mining activities caused by widespread flooding across various regions.

According to the data released by the National Statistics Office (NSO), mining sector output grew by 0.2 per cent, manufacturing production by 3.9 per cent and electricity output by 0.5 per cent in the month of September 2024.

In August, the mining sector output contracted by 4.3 per cent and power generation by 3.7 per cent. The growth in manufacturing too was muted at 1.1 per cent.

“The IIP growth rate for the month of September 2024 is 3.1 per cent which was (-) 0.1 per cent in the month of August 2024,” NSO said in a statement.

During April-September 2024-25, the IIP growth was 4 per cent lower than 6.2 per cent in the year ago.

As per the use-based classification released by the NSO, the capital goods segment growth decelerated to 2.8 per cent in September 2024 from 8.4 per cent in the year-ago month.

Consumer non-durables output grew by 2 per cent against a growth of 2.7 per cent in September 2023.

Consumer durable goods production expanded by 6.5 per cent during the reporting month, up from one per cent in September 2023.

According to the data, infrastructure/construction goods reported a growth of 3.3 per cent in September 2024, down from a 10.1 per cent expansion in the year-ago period.The data also showed that the output of primary goods rose by 1.8 per cent as against a growth of 8 per cent a year earlier.

The expansion in the intermediate goods segment was 4.2 per cent.

Within the manufacturing sector, NSO said top three positive contributors in September 2024 were – ‘Manufacture of coke and refined petroleum products’ (5.3 per cent), ‘Manufacture of basic metals’ (2.5 per cent), and ‘Manufacture of electrical equipment’ (18.7 per cent).