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Nov’24 IIP improves to a six-month high of 5.2%

led by the manufacturing and electricity sectors

*Industrial output growth picked up to 5.2% YoY in Nov’24 (vs. +3.7%/2.5% in Oct’24/Nov’23), the highest in six months. Improvement in IIP was primarily led by the manufacturing and electricity sectors and partly due to a favorable base (Exhibit 1). During Apr-Nov’24, IIP growth averaged 4% YoY, compared to 6.3% YoY in the corresponding period last year.

*Manufacturing sector output grew 5.8% YoY in Nov’24 vs. +4.4% YoY in Oct’24 and +1.3% YoY in Nov’23, the highest in eight months. The details of the manufacturing sector suggest that only 43% of the sub-sectors grew at a slower rate compared to Nov’23 (vs. 75% in Oct’24), 52% of the items grew less than 5% (vs. 69% in Aug'24), and 12.7% of the items posted a contraction (vs. 16.3% in Oct’24; Exhibit 4). Additionally, power generation improved 4.4% YoY during the month (vs. +5.8%/ +1.3% in Oct’24/Nov’23). Conversely, mining activity picked up in Nov’24; however, it remained muted (+1.9% YoY in Nov’24 vs. +0.9%/7.0% YoY in Oct’24/Nov’23; Exhibit 2).

*According to use-based classification, the growth in the output of primary goods decelerated to 2.7% YoY in Nov’24 (vs. 8.4% YoY in Nov’23). On the other hand, capital goods (at +9% in Nov’24 vs. +3.1%/-1.1% in Oct’24/Nov’23), intermediate goods (at +5.0% in Nov’24 vs. +4.6%/3.4% in Oct’24/Nov’23), infrastructure & construction goods (at +10% in Nov’24 vs. +4.8%/ 1.5% in Oct’24/Nov’23) and consumer goods (at +5.1% in Nov’24 vs. +3.9%/-3.9% in Oct’24/Nov’23) grew at a faster pace in Nov’24 (vs. Oct’24 as well as Nov’23; Exhibit 3). Within consumer goods, growth of consumer durables goods remained robust, rising at a 13-month high of 13.1% in Nov’24 aided by festive demand revival, while growth of consumer non-durable goods decelerated to a three-month low of +0.6% in Nov’24.

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