India’s Industrial Output Growth Reaches 6-Month High of 5.2% in November
India’s industrial output experienced a significant boost in November, achieving a six-month high with a 5.2% year-on-year increase. This growth surpasses economists’ expectations and indicates a positive trend in the country’s industrial sector.
The manufacturing sector, which constitutes approximately 17% of India’s GDP, played a pivotal role in this upturn, recording a 5.8% rise in output. Electricity generation also contributed positively, with a 4.4% increase, while mining activities saw a 1.9% uptick during the same period.
Notably, the production of consumer durables surged by 13.1% in November, a significant improvement from the revised 5.7% growth observed in October. Similarly, capital goods output rose by 9%, compared to a 3.1% increase in the previous month, reflecting heightened investment in infrastructure and industrial projects.
Despite this encouraging performance, experts emphasize the need for sustained industrial growth to bolster the overall GDP, particularly as manufacturing sector growth has been modest at 5.3%. The government’s projections suggest that India’s economic growth may slow to a four-year low of 6.4% by the end of the fiscal year, underscoring the importance of maintaining momentum in industrial production.
In the April-November period, industrial output increased by 4.1%, a decline from the revised 6.5% growth recorded in the same period the previous year. This trend highlights the challenges faced by the industrial sector and the necessity for continued policy support to sustain growth.
Overall, the November figures offer a cautiously optimistic outlook for India’s industrial sector, with key industries demonstrating resilience and potential for further expansion in the coming months.
