Factory Output Rises 1.8% in November Versus 3.8% Contraction In October

The country's industrial output measured by the Index of Industrial Production (IIP) rose 1.8 per cent in November from the same month a year earlier, government data showed on Friday. Factory output contracted by 3.8 per cent in October.

In terms of industries, thirteen out of the twenty three industry groups in the manufacturing sector have shown positive growth during the month of November 2019 as compared to the corresponding month of the previous year, Ministry of Statistics & Programme Implementation said in a press release.

Analysts polled by Reuters had forecast that November industrial output fell 0.6 per cent year-on-year.

The cumulative growth for April-November over the corresponding period of the previous year was 0.6 per cent.

Rahul Gupta, Head of Research - Currency, Emkay Global Financial Services said, “For the first time in the last four months, Nov IIP growth rate has increased to 1.8% from -3.8% in Oct as production activity in cement and fertilisers has picked up. Due to a major slowdown in the economy, India's IIP has been contracting since Aug 2019; however, a favourable base effect and improvement in PMI numbers has led to an expansion.”