Industrial production: 4% decline in industrial production in October, worst performance in two years

The official data on industrial production for the month of October has been released. India's industrial production fell 4 percent in October, according to the Index of Industrial Production (IIP), data released by the Ministry of Statistics and Program Implementation on December 12 showed. With output growing by 3.5 percent in September, the latest data show that industry growth has turned back to negative after a gap of only one month. Let us tell you that in August industrial production decreased by 0.7 percent.

The decline in IIP in October is much below the estimate. This is the worst performance of the Indian industry in the last two years. It is being said that behind this is a decline in the production of the manufacturing sector and a slow pace in mining and electricity generation.

What do the figures say

Talking about the increase, the Index of Industrial Production (IIP) had increased by 4.2 percent in October 2021, while the Industrial Production Index had increased by 3.1 percent in September 2022 in September this year.

According to the IIP data released by the National Statistical Office (NSO), the manufacturing sector output is set to decline by 5.6 percent in October 2022. Whereas, mining production increased by only 2.5 percent and electricity production increased by 1.2 percent. On the other hand, there was an increase of 4.6 percent in mining production and 11.6 percent in electricity generation during September.

Manufacturing was the worst-performing sector in October, with its output contracting by 5.6 percent. Mining and electricity grew by 2.5 percent and 1.2 percent, respectively. Production of four of the six items contracted on a year-over-year basis in October. Consumer durables and non-durables fared the worst, with their output declining by double digits.