Factory output logs 5-year record in Oct

For the April-October 2015 period, index of industrial production (IIP) grew 4.8 per cent, official data released on Friday showed.

The Index of Industrial Production (IIP) grew 9.8 per cent in November from a year earlier, close to the highest forecast of 9.9 per cent by a recent VCCircle survey but missing VCCircle median of 6.75 per cent on the basis of inputs from 17 economists.

While capital goods sector showed some momentum after growing at 10.3 per cent in September, the growth in the sector at 16.1 per cent was still lower than the 21.8 per cent in August.

Basic goods production increased by 4.1 per cent in October while sector recorded 4.1 per cent growth while capital goods production grew 16.1 per cent production of intermediate goods expanded by 6.7 per cent in October.

The IIP growth in September 2015 was scaled up to 3.8% in the first revision compared with 3.6% reported provisionally. The manufacturing sector, a key indicator of economic activity, grew 10.6 per cent year-on-year in October. While the consumer goods category saw a growth of 18.4 per cent, consumer non-durables rose by 4.7 per cent.

The October industrial production growth was also due to a favourable base effect of a year ago but a sustained growth in manufacturing for the past as many months, which pointed toward a gradual recovery in this sector which is at the heart of the “Make in India” programme.

India Inc. welcomed the substantial rise in the factory output and called for continued push for reform measures to maintain the growth trajectory.

However, the industrial output has given a hope for the Government that the trend will continue to see a better economy in the future. Mining and quarrying production climbed 4.7 percent.

Seventeen out of the 22 industry groups in the manufacturing sector have shown positive growth during October 2015. This lifted consumer demand especially during the festival period.

The industry group furniture-manufacturing has clocked the highest growth of 138.9 per cent, followed by 48.4 percent in office, accounting and computing machinery and 47.5 percent in radio, television and communication equipment and apparatus.