India's industrial output hits 25-month high of 6.7% in November
What's the story
India's industrial production saw a significant jump in November, with the Index of Industrial Production (IIP) growing by 6.7%. This is the highest growth rate in over two years, according to data released on December 29. The increase comes as a major recovery from October's low growth rate of just 0.4%. The improvement is mainly due to a revival in core sector industries such as steel and cement.
Sector performance
Core sector industries drive industrial production growth
The core sector, which contributes nearly 40% to the IIP, grew by 1.8% in November. This marks a recovery from its contraction in October. The revival was mainly driven by an increase in steel and cement production. However, electricity generation continued to decline with a contraction of 2.2%, compared to a growth of 6.9% in October due to post-monsoon demand softening and weather-related volatility.
Manufacturing growth
Manufacturing sector leads industrial output recovery
The manufacturing sector led the industrial output recovery with an impressive growth of 8% in November. Major contributors to this growth were basic metals and fabricated metal products, pharmaceuticals, and motor vehicles. These sectors together contributed significantly to the overall industrial growth. Mining activity also saw a revival with a growth rate of 5.4% during the month due to improved metallic minerals production post-monsoon season.