<p>New Delhi: India’s industrial production growth declined to three-month low of 5.8% in September from 10.3% expansion recorded in the previous month, dragged by sluggish growth in the manufacturing sector, National Statistical Office (NSO) data showed on Friday.</p>.<p>Annual growth of the manufacturing sector that has 77.63% weight in the Index of Industrial Production (IIP), declined to 4.5% in September from 9.3% recorded in the previous month.</p>.<p>While the moderation was broad-based across all sub-sectors and use-based categories, the performance of consumer goods was especially tepid at 1% and 2.7%, respectively, for durables and non-durables, resulting in the manufacturing sector's performance trailing that of mining and electricity, said Aditi Nayar, chief economist at ICRA.</p>.<p>Factory output measured in terms of IIP registered a cumulative growth of 6% in the first six months of the current financial year, which is lower than 7.1% expansion recorded in the same period of last year.</p>.<p>The industrial growth performance in the month of September 2023 was better when compared with the same month of last year. IIP growth in September 2022 stood at 3.3%, which went up to 5.8%, this year. Likewise, manufacturing sector growth in September 2022 stood at 2%, which improved to 4.5% in September 2023.</p>.<p>However what make these growth numbers doubly unimpressive is that these marginal growth is being resisted on a low base. </p>.<p>“A slowdown in industrial growth could be worrisome as it might hurt employment opportunities in rural and semi-urban areas,” said Mohit Rahlan, CEO, TIW Capital. </p>.<p>“This becomes even more important as kharif sowing this year has remained weak. It might hurt consumer confidence and overall consumption subsequently. Against the backdrop of a slowing global economy, reliance on domestic growth drivers will be even more,” Rahlan said.</p>.<p>Growth in mining and electricity output remained robust during the month. Mining sector posted a year-on-year growth of 11.5% in September, the third straight month of double-digit growth. Electricity output in September was 9.9% higher when compared with the same month last year.</p>.<p>Disappointing numbers came from consumer durable and non-durables segments, said Sunil Kumar Sinha, principal economist at India Ratings and Research. “So long as these segments do not revive comprehensively, a broad-based and sustained pickup in IIP growth will remain elusive,” he said.</p>.<p>On future growth projections, Sinha noted that high frequency indicators such as coal, power demand, steel, e-way bills grew in the range of 11%-30% year-on-year in October 2023. “This suggests economic activity gathering some momentum in October 2023 due to festive demand,” he said.</p>.<p>This along with a favourable base effect (October 2022: negative 4.1% yoy) may keep IIP growth around 10% YoY in October 2023, he added.</p>
<p>New Delhi: India’s industrial production growth declined to three-month low of 5.8% in September from 10.3% expansion recorded in the previous month, dragged by sluggish growth in the manufacturing sector, National Statistical Office (NSO) data showed on Friday.</p>.<p>Annual growth of the manufacturing sector that has 77.63% weight in the Index of Industrial Production (IIP), declined to 4.5% in September from 9.3% recorded in the previous month.</p>.<p>While the moderation was broad-based across all sub-sectors and use-based categories, the performance of consumer goods was especially tepid at 1% and 2.7%, respectively, for durables and non-durables, resulting in the manufacturing sector's performance trailing that of mining and electricity, said Aditi Nayar, chief economist at ICRA.</p>.<p>Factory output measured in terms of IIP registered a cumulative growth of 6% in the first six months of the current financial year, which is lower than 7.1% expansion recorded in the same period of last year.</p>.<p>The industrial growth performance in the month of September 2023 was better when compared with the same month of last year. IIP growth in September 2022 stood at 3.3%, which went up to 5.8%, this year. Likewise, manufacturing sector growth in September 2022 stood at 2%, which improved to 4.5% in September 2023.</p>.<p>However what make these growth numbers doubly unimpressive is that these marginal growth is being resisted on a low base. </p>.<p>“A slowdown in industrial growth could be worrisome as it might hurt employment opportunities in rural and semi-urban areas,” said Mohit Rahlan, CEO, TIW Capital. </p>.<p>“This becomes even more important as kharif sowing this year has remained weak. It might hurt consumer confidence and overall consumption subsequently. Against the backdrop of a slowing global economy, reliance on domestic growth drivers will be even more,” Rahlan said.</p>.<p>Growth in mining and electricity output remained robust during the month. Mining sector posted a year-on-year growth of 11.5% in September, the third straight month of double-digit growth. Electricity output in September was 9.9% higher when compared with the same month last year.</p>.<p>Disappointing numbers came from consumer durable and non-durables segments, said Sunil Kumar Sinha, principal economist at India Ratings and Research. “So long as these segments do not revive comprehensively, a broad-based and sustained pickup in IIP growth will remain elusive,” he said.</p>.<p>On future growth projections, Sinha noted that high frequency indicators such as coal, power demand, steel, e-way bills grew in the range of 11%-30% year-on-year in October 2023. “This suggests economic activity gathering some momentum in October 2023 due to festive demand,” he said.</p>.<p>This along with a favourable base effect (October 2022: negative 4.1% yoy) may keep IIP growth around 10% YoY in October 2023, he added.</p>