IIP: India's Industrial Output Grows 3.8% In December

The Index of Industrial Production grew 3.8% in December, as compared with a revised estimate of 2.4% in November.

<div class="paragraphs"><p>(Source: Unsplash)</p></div>
(Source: Unsplash)

India's industrial output grew by 3.8% in December, led by an improvement in mining and manufacturing.

The Index of Industrial Production rose by 3.8% in December, as compared with a revised estimate of 2.4% in November, according to data published by the Ministry of Statistics and Programme Implementation on Monday.

Economists polled by Bloomberg had forecast December IIP growth at 2.5%.

In contrast to the slowdown in the core sector growth, the annual growth in industrial output was led by an improvement in the performance of manufacturing. In terms of the use-based categories, only primary goods reported a sequential moderation in December 2023, with all five other categories reporting an improvement. 

"With the available high frequency data for January 2024 appearing promising, we anticipate a modest rise in the IIP growth to 4-6% in that month," said Aditi Nayar, chief economist at ICRA.

Sectoral Estimates (YoY)

  • Mining output grew by 5.1%.

  • Manufacturing output expanded by 3.9%.

  • Electricity generation rose by 1.2%.

Industrial output, as classified by the end use of goods, showed:

  • Primary goods output rose 4.6%.

  • Capital goods output increased 3.2%.

  • Intermediate goods output rose 3.4%.

  • Infrastructure and construction goods output gained 4.1%.

  • Consumer durables output rose 4.8%.

  • Consumer non-durables output rose 2.1%.

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