The industrial production rate for November rose to 7.1% for November 2022, the highest in five months, according to government data released on Thursday.
Data released by the Ministry of Statistics and Programme Implementation showed that the IIP for November stood at 137.1, up from 128 in the year-ago period and October 2022's 129.3.
The Consumer Price Index (CPI)-based inflation rate eased to 5.72% for December, down from 5.88% in November and 6.77% in October 2022, the data revealed.
Up from the negative 4.2% growth from October 2022 year-on-year, the IIP growth is much higher than the consensus estimate of 3.2% for November. The IIP for April-November 2022 period registered a 5.5% growth as against 17.6% in the same period of the previous year.
IIP is used to measure manufacturing activity across various sectors of an economy. IIP measures the amount of industrial production for the period under review in comparison with a reference period.
Electricity production led the IIP numbers with 12.7% growth followed by mining which grew 9.7% and manufacturing and primary goods too showed healthy growth at 6.1% and 4.7% for the month of November.
The IIP growth for November was expected to come at 2.7 percent, against a decline of four percent in October, and 1.4 percent in the year-ago period, according to a CNBC-TV18 poll. Core industries grew 5.4 percent year-on-year in November 2022 vs 0.9 percent, month-on-month partially aided by favourable base.
The rise in IIP will be supported by improved electricity production, up 12 percent, coal up 12 percent, steel up 10.8 percent, and cement up 28.6 percent year-on-year. The manufacturing PMI rose steadily from 55.3 in October to 55.7 in November and 57.8 in December. Motor vehicle production increased from 20.4 percent year-on-year in November vs 1.1 percent year-on-year decline in October 2022.
In October, the IIP growth declined to four percent, down from 3.1 percent in the preceding month.
Here's how various sectors performed in October and September
| Sector | October | September |
| Primary Goods | 2% | 9.30% |
| Capital Goods | -2.30% | 10.30% |
| Infra/Construction Goods | 1% | 7.4% |
| Consumer Durables | -15.30% | -4.5% |
| Consumer Non-Durables | -13.40% | -7.1% |
First Published: Jan 12, 2023 5:18 PM IST
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