Indian economy: The index of industrial production staged a recovery in November after three months of contraction on the back of a sterling show by the manufacturing sector. Industrial output measured in terms of IIP grew 1.8% in November, compared with 0.2% in the same month last year, powered by a 2.7% growth in manufacturing sector, according to government data released on Friday.
The index grew 0.6% in the first eight months of the financial year, compared with 5% in the same period last fiscal, reflecting the slowdown in economic growth. The economy expanded 4.5% in the second quarter of the fiscal year, the lowest rate since 2014. The government expects Indian economy to grow at 5% in 2019-20, the slowest pace in more than 10 years.
The most dramatic slump was recorded in electricity generation, which saw a 5% decline in November compared with a growth of 5.1% in the same month last year. The mining sector witnessed a growth of 1.7%, compared with 2.7% in November last year.
The production of capital goods shrank 8.6% in November, compared with a decline of 4.1% in the same month last year. The infrastructure and construction goods segment also witnessed a decline of 3.5%. The FMCG sector recorded 2% growth, the consumer durables segment witnessed a decline.
Thirteen of the 23 industry groups in manufacturing witnessed growth in November 2019, compared with the same month last year.