India’s industrial production index shows growth of 3.1 percent in September 2024

India’s industrial sector demonstrated fresh momentum as the Index of Industrial Production (IIP) recorded a growth rate of 3.1 per cent in September 2024.

According to the Ministry of Statistics and Program Implementation, this is a significant improvement compared to the previous month, where there was a marginal contraction of -0.1 per cent in IIP in August.

The composite index rose to 146.7 in September 2023 compared to 142.3, reflecting strong performance in several key industries, with manufacturing leading the way.

Three key sectors—mining, manufacturing and power—performed differently in September. Mining witnessed a modest growth of 0.2 per cent, while manufacturing grew strongly by 3.9 per cent, becoming the primary driver of growth in the industrial sector.

Electricity, although growing at a slow pace, registered a growth of 0.5 per cent. Within the manufacturing sector, the top contributors to this growth were “manufacturing of coke and refined petroleum products”, which increased by 5.3 percent; “Manufacturing of basic metals,” up 2.5 percent; and “Manufacturing of electrical equipment”, which saw an impressive growth of 18.7 percent.

Examining IIP growth through usage-based classification, the report showed wide-ranging improvements across sectors.

Primary goods recorded a growth rate of 1.8 percent, while capital goods witnessed a growth of 2.8 percent. Intermediate goods led the way with a growth of 4.2 per cent, which contributed significantly to the overall IIP growth.

Infrastructure and construction goods grew by 3.3 percent, and consumer durables saw the highest growth rate among all categories at 6.5 percent.

Consumer non-durable goods also witnessed positive growth with an increase of 2.0 per cent. Among these, intermediate goods, consumer durables and primary goods emerged as the top contributors to September IIP growth, highlighting strong demand across various consumer and industrial sectors.

The IIP data compiled monthly is revised for accuracy with inputs from source agencies and establishments.

Along with the September quick estimates, the indices for August and June 2024 were revised based on updated data, yielding weighted response rates of 91 per cent, 94 per cent and 96 per cent for each month, respectively.

This iterative review process ensures a comprehensive and accurate picture of India’s industrial performance. The next set of IIP data covering October 2024 is due to be released on December 12.