Industrial output: India's November IIP grows 1.8%, signalling recovery

Mining sector output decelerated to 1.7 percent from 2.7 percent in the year-ago month. The IIP growth during April-November period of the current fiscal came in at 0.6 percent, down from 5 percent in the same period of 2018-19.

The data for the November month further revealed that production of capital goods, a barometer of investment, contracted by 8.6 percent. This compares with a contraction of 4.1 percent in November 2018. Also, there was a contraction of 3.5 percent in the infrastructure and construction goods segment.

While consumer durables output was in the negative territory, the consumer non-durable segment or FMCG goods recorded a small growth of 2 percent (against the contraction of 0.3 percent in November 2018).

As per the NSO data, 13 out of the 23 industry groups in the manufacturing sector showed positive growth during November 2019 as compared to the corresponding month of the previous year.

According to government data, the Indian economy is estimated to grow at 5 percent in 2019-20 as against 6.8 percent in the previous fiscal. The decline has been mainly on account of deceleration in manufacturing sector growth, which is expected to come down to 2 percent in 2019-20 from 6.2 percent in the year-ago fiscal.

Also, the Reserve Bank of India's GDP growth forecast for FY20 started at 7.4 percent in December 2018 and has been brought down at every single monetary policy committee (MPC) meeting since then and now stands at 5 percent.