India’s industrial output declined by 4 per cent in October, as per the latest Index of Industrial Production (IIP) data released by the National Statistical Office (NSO). The decrease is mainly due to a decline in the manufacturing sector output and subdued growth in mining and power generation.
The latest figures show that output increased by 3.5 percent in September but it was down after just one month. IIP contracted to 129.6 in October from 133.5 in September. The Index of Industrial Production (IIP) had grown 4.2 per cent in October 2021.
As per the revision policy of IIP, these ouick estimates will undergo revision in subsequent releases.
The manufacturing sector contracted by 5.6 per cent while mining and electricity grew by 2.5 per cent and 1.2 per cent each in October 2022.
The Indices of Industrial Production for the mining, manufacturing, and electricity sectors for the month of October 2022 stand at 112.5, 128.7 and 169.3 respectively.
As per use-based classification, the indices stand at 131.1 for primary Goods, 87.7 for capital Goods, 143.1 for intermediate goods, and 155.1 for infrastructure/construction goods for the month of October 2022. Further, the indices for consumer durables and consumer non-durables stand at 109.7 and 129.6 respectively for the month of October 2022.
Industrial production had shrunk by 0.7 percent in August.
Meanwhile, retail inflation fell to an 11-month low of 5.88 per cent in November, mainly due to softening prices of food items, as per government data.
This is the first time in 11 months that the retail inflation print has come within the RBI’s tolerance band of 4 (+/- 2) per cent.
The consumer price index (CPI) based retail inflation was 6.77 per cent in October 2022, and 4.91 per cent in November last year.
As per the data released by the National Statistical Office (NSO), inflation in the food basket was 4.67 per cent in November, against 7.01 per cent in the previous month.
(With PTI inputs)