India’s Industrial Growth in September 2024: A Snapshot
India’s industrial sector is showing positive signs of recovery, with the Index of Industrial Production (IIP) recording a growth of 3.1% in September 2024. This figure is a significant improvement compared to a (-0.1%) dip in August 2024, highlighting an encouraging upward trend in industrial activity.
What is the Index of Industrial Production (IIP)?
The IIP measures the growth rate of various industrial sectors, offering insights into the overall economic performance. It is released monthly with a six-week lag, based on data from factories and establishments.
The base year for IIP calculations is 2011-12. September’s IIP stands at 146.7, a notable rise from 142.3 in September 2023.
Key Sectoral Performances
In September 2024, the three core sectors—Mining, Manufacturing, and Electricity—showed mixed growth rates:
- Mining: Grew by 0.2%.
- Manufacturing: Achieved a strong growth of 3.9%.
- Electricity: Increased by 0.5%.
The manufacturing sector shone brightly, thanks to significant contributions from:
- Manufacture of coke and refined petroleum products: 5.3% growth.
- Manufacture of basic metals: 2.5% growth.
- Manufacture of electrical equipment: A remarkable 18.7% growth.
Use-Based Growth Insights
IIP is also classified based on the end-use of goods, revealing the following trends in September 2024:
- Primary Goods: Grew by 1.8%.
- Capital Goods: Improved by 2.8%.
- Intermediate Goods: Rose by 4.2%.
- Infrastructure/Construction Goods: Increased by 3.3%.
- Consumer Durables: Witnessed a robust growth of 6.5%.
- Consumer Non-Durables: Grew by 2.0%.
The top contributors to this growth were Intermediate Goods, Consumer Durables, and Primary Goods.
Revisions and Accuracy
The IIP data undergoes revisions to ensure accuracy. For September 2024:
- August 2024 indices have been revised once.
- June 2024 indices have undergone final revisions.
The weighted response rates for these compilations are 91% (September), 94% (August), and 96% (June), reflecting the robustness of data collection.
What’s Next?
The next IIP release, covering October 2024, is scheduled for 12th December 2024. This will provide further insights into the industrial sector’s momentum.
Why Does This Matter?
Industrial growth is a key driver of economic health. The rise in IIP signals recovery and boosts investor confidence, employment, and overall economic development. Sectors like manufacturing and consumer goods are particularly crucial, as they indicate demand and productivity.
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