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Industrial growth has reached its highest level in 2 years in November. Production growth this month has been recorded at 6.7%. Last month in October it was at 0.4%. The strong industrial growth has been driven by good performance in the manufacturing and mining sectors. Manufacturing contributes more than three-fourths to IIP.
The output of India’s manufacturing sector stood at 8% in November, whereas it was 5.5% in the same month last year. At the same time, the production of mining sector saw a growth of 5.4% in November, which was 1.9% in the same period last year. There was a growth of -1.5% in the electricity sector. In November last year, a growth of 4.4% was recorded.
Sector wise industrial growth in November compared to October:
- Manufacturing: It was at 5.5% in October which came down to 8% in November.
- Mining: It was 1.9% in October which came down to 5.4% in November.
- Electricity: It was at 4.4% in October which came down to -1.5% in November.
- Primary Goods: It was at -0.6% in October which came down to 2.0% in November.
- Capital Goods: It was 2.1% in October which came down to 10.4% in November.
- Intermediate Goods: It was 2.5% in October which increased to 7.3% in November.
- Infrastructure Goods: It increased from 7.1% in October to 12.1% in November.
- Consumer Durable Goods: It increased from -1.3% in October to 10.3% in November.
- Consumer Non-Durable Goods: It was -5.2% in October which came down to 7.3% in November.
What is Index of Industrial Production (IIP)?
As the name suggests, the production data of industries is called industrial production. Three big sectors are included in this. The first is manufacturing, that is, things made in industries, like cars, clothes, steel, cement etc.
The second is mining, which provides coal and minerals. The third is – Utilities i.e. things used by the general public. Such as roads, dams and bridges. Whatever production they do together is called industrial production.
How is it measured?
IIP is the unit for measuring industrial production – Index of Industrial Production. For this, the base year has been fixed as 2011-12. That is, the increase or decrease in the production of industries now compared to 2011-12 is called IIP.
77.63% of this entire IIP comes from the manufacturing sector. Apart from this, the direct impact of the production of these eight big industries – electricity, steel, refinery, crude oil, coal, cement, natural gas and fertilizer – is visible on IIP.
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