Industrial Output Growth In India Slows To 3.2 pc In December, Shows Mixed Sector Performance

New Delhi, Feb 13 (KNN) India's industrial production growth decelerated to a four-month low of 3.2 per cent in December 2024, with key sectors showing modest gains.

The manufacturing and mining sectors demonstrated limited expansion at 3 per cent and 2.6 per cent respectively, while the electricity sector posted a more robust growth of 6.2 per cent compared to the previous year.

The National Statistics Office revised its November 2024 industrial production growth figures downward from 5.2 per cent to 5 per cent.

Despite the slowdown, the third quarter of 2024-25 showed improvement, with average factory output growth reaching 3.95 per cent, up from 2.73 per cent in the second quarter.

Capital goods emerged as the strongest performer among industrial segments, recording a 10.3 per cent increase, followed by consumer durables at 8.3 per cent.

Infrastructure and construction goods showed positive momentum with a 6.3 per cent rise, while intermediate goods and primary goods registered growth of 5.9 per cent and 3.8 per cent respectively.

However, the consumer non-durables sector remained challenging, experiencing a significant decline of 7.6 per cent in December, though its output levels reached an 11-month high compared to November.

The Index of Industrial Production achieved a nine-month peak of 157.3 points, marking a 6.1 per cent increase over November. Both manufacturing and mining sectors recorded their highest index readings for the fiscal year.

Within manufacturing, electrical equipment led the growth with a substantial 40.1 per cent increase, followed by basic metals at 6.7 per cent and coke and refined petroleum products at 3.9 per cent. Overall, 16 out of 23 manufacturing industry groups showed positive growth in December.

According to the NSO's end-use classification analysis, primary goods, intermediate goods, and infrastructure/construction goods emerged as the principal contributors to the month's industrial growth, highlighting the varied performance across different sectors of the economy.

(KNN Bureau)