November IIP Growth Hits Two-Year High Of 6.7% After Flat October

India's factory output surged to a two-year high in November, after a flat performance in October, according to the data released by the Ministry of Statistics and Programme Implementation on Monday.

The Index of Industrial Production (IIP) grew by 6.7% year-on-year during the month under review, as compared to 0.4% in October.

The rebound in output was driven by the manufacturing sector, which grew at 8%. This was led by the production of basic metals, fabricated metals, pharmaceuticals and motor vehicles, the ministry said in a release.

In the preceding month, the manufacturing output had grown by only 2%.

The growth in mining sector also contributed to the surge in IIP. The sectoral output rose by 5.4% in November, as compared to a 1.8% slump in October.

The growth rebounded "due to closure of monsoon season and strong growth in metallic minerals such as iron ore", the ministry said.

Electricity generation in November, however, slipped 1.5% as compared to a 4.4% growth in October.

On use-based classification, the output of primary goods rose by 2%, as against a 0.6% decline in the previous month. Capital goods output jumped 10.4%, following a 2.1% climb in October.

The production of intermediate goods increased by 7.3% from 2.5% in October, whereas infrastructure goods saw a growth of 12.1% from 7.1%.

A consumption boost has also likely factored in the rise of industrial output, as consumer durables grew 10.3% in November after a 1.3% decline in October, whereas consumer non-durables grew by 7.3% following a 5.2% decline.

The overall surge in IIP in November also comes in the backdrop of fewer manpower days in October, when the country celebrated major festivals.