India’s factory output grows 3.6 per cent in October

NEW DELHI: Signalling what appears to be a sustained recovery, India’s industrial production rose to an eight-month high of 3.6% in October on the back of pickup in manufacturing, consumer goods and power sectors. The IIP had contracted by 6.6% in October 2019.

However, experts warn it is too early to celebrate as the latest numbers are not so impressive considering the festive push and the low base last year. “Coming on the base of a 6.6% contraction in October 2019, the 3.6% growth in the IIP in October 2020 is decidedly modest, and suggests that caution in the interpretation of the strength of the economic recovery is still warranted,” Aditi Nayar, Principal Economist, ICRA said.

According to data by the Ministry of Statistics and Programme Implementation, the manufacturing sector, which has a weightage of 77.6% in the IIP, recorded 3.5% in October. In the year-ago period, the sector had contracted 5.7%. Meanwhile, the consumer durables segment posted an impressive growth of 17.6% in October compared with 18.9% contraction in the same period a year ago.