India’s October industrial production drops sequentially to 3.2%. (Roundup).

New Delhi, December 10, 2010 : .Indias high base effect and supply side restrictions such as shortages of semiconductors helped to ease Indias industrial output growth, which was 3.

2 percent in October on a sequential and year-on-year basis.

The rise in Index of Industrial Production (IIP) for October marginally eased to 3.2 per cent from 3.30 per cent in September 2021.Similarly, on a year-on-year basis, the October output showed a decelerating trend from a growth of 4.5 per cent reported for the corresponding period of the previous fiscal."For the month of October 2021, the Quick Estimates of Index of Industrial Production with base 2011-12 stands at 133.7," the Ministry of Statistics and Programme Implementation said."The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of October 2021 stand at 109.7, 134.7 and 167.3 respectively."In terms of Yoy percentage basis, the mining excavation output grew by 11.4 per cent from (-) 1 per cent in 2020-21, but, manufacturing production fell 2 per cent from 4.5 per cent and electricity generation decreased by 3.1 per cent from 11.2 per cent.Among the major use-based segments, the October data, on a YoY basis, showed that manufacturing of primary goods grew by 9 per cent from (-) 3.1 per cent, whereas capital goods production fell by (-) 1.1 per cent from a rise of 3.2 per cent, and intermediate goods decreased by 2.1 per cent from 3.2 per cent.The production of infrastructure or construction goods also fell by 5.3 per cent from 10.9 per cent.Consumer durables production fell by (-) 6.1 per cent from a growth of 18.1 per cent and the sub-segment of consumer non-durables grew by just 0.5 per cent from a rise of 7.3 per cent.

Aditi Nayar, ICRAs Chief Economist, stated that "Industrial Growth printed at a steady but tepid 3.2% in October 2021.The festive season boost was negated by supply side problems afflicting auto industry, and a higher basis.

"The disaggregated data does not provide convincing signals of the recovery becoming durable and broad-basing further, with capital goods and consumer durables reporting a YoY contraction in October 2021." India Ratings & Research Chief Economist Devendra Kumar Pant said: "Despite 25.3 per cent growth in GST collection and 7.5 per cent growth in core infrastructure sectors, October 2021 IIP growth was impacted by the base effect and grew 3.2 per cent only."

The IIP growth was very weak and festive demand could not increase IIP growth by October 2021.Weak demand in the economy is evident by a contraction in consumer durable of 6.1% and consumer non-durable growth of 0.5%.The mining sector only has experienced a 11.4 percent growth.

Acuite Ratings & Research Chief Analytical Officer, Suman Chowdhury said: "While the momentum of industrial revival is slower than expected, the output levels have started to exceed the pre pandemic levels.""We expect moderate growth in IIP over the next few months given the raw material shortages and thereby, the likely production constraints in certain sectors.

" #Indias #October #industrial #drops #sequentially #Delhi #Delhi #New Delhi .