India’s Industrial Production (IIP) grew by 3.1% in September 2024. This growth is a sharp improvement from the 0.1% decline in August 2024. The main reasons for this growth include the strong performance of the construction sector and modest growth in power generation and mining. However, the growth has been slower than the 6.4% growth in September 2023 on a year-on-year basis, reflecting a more cautious and restrained approach to rebuilding industries.
Key Sectoral Growth
Construction Sector: 3.9% Growth
The construction sector registered a growth of 3.9% in September 2024, contributing significantly to the overall production growth. Some of the key sub-sectors contributing to this growth are:
- Coke and Refined Petroleum Products grew by 5.3%.
- Basic Metals grew by 2.5%.
- Electrical Equipment grew by 18.7%.
This growth indicates a positive trend in the growth of the industry, especially in sub-sectors that involve heavy production and energy consumption.
Electricity generation: 0.5% growth
Electricity generation reported a growth of 0.5%, indicating stable demand in the energy sector. This growth is an indication that despite fluctuations in energy consumption in the country, the overall demand remains stable.
Mining: 0.2% growth
The mining sector witnessed a marginal growth of 0.2%, indicating gradual recovery. This growth in the mining industry reflects the fact that mining activities are slowly returning to normal, although the growth is not very large.
Growth in Use-Based Classification
Primary Textiles: Growth of 1.8%
Primary textiles grew by 1.8%, indicating that demand for basic products remained stable.
Capital Textiles: Growth of 2.8%
Capital textiles grew by 2.8%, indicating a slight increase in demand for equipment and machinery required for production.
Intermediate Textiles: Growth of 4.2%
Intermediate textiles saw the highest growth of 4.2%, indicating strong demand for materials required for production.
Infrastructure/Construction Textiles: Growth of 3.3%
This category grew by 3.3% due to increased activity in construction and infrastructure projects.
Consumer Durables: Growth of 6.5%
Consumer durables grew by 6.5%, indicating strong demand from consumers. This means that people are increasing their purchase of durable clothing, which is a positive economic sign.
Consumer temporary clothing: 2% growth
This category shows a growth of 2%, which reflects stability in consumer demand and general trends.
September 2024 IIP Index
- Manufacturing: 147.0
- Mining: 111.7
- Electricity: 206.9
These indices show that every sector has shown a slight increase, which indicates normalization of economic activities.
Comparison with the past
IIP growth
IIP grew by 4% in the April-September 2024 period, which is less than the growth of 6.2% in the same period last year. This slow growth indicates that the country’s economy is growing normally, but its pace is not very fast.
Comparison with last year
Industrial production grew by 6.4% in September 2023, which has now declined to 3.1%. This represents a major reduction, which certainly reflects a kind of accurate adjustment in the economic outlook.
Conclusion
India’s industrial production growth in September 2024 has shown a ray of hope, as it follows the decline in August 2024. Although the growth has been less than last year, the direction of recovery is clearly visible in various sectors. Growth, especially in construction and consumer durables, strengthens the hopes of recovery of Indian industry.
5 FAQs
1. How much did India’s industrial production grow in September 2024?
India’s industrial production grew by 3.1% in September 2024.
2. How much did the construction sector grow?
The construction sector had grown by 3.9%, which was the major contributor to the overall growth.
3. What was the growth in electricity generation?
Electricity generation had increased by 0.5%.
4. What was the growth in the mining sector?
The mining sector had witnessed a marginal growth of 0.2%.
5. What was the growth in consumer durables?
Consumer durables had grown by 6.5%, indicating strength in consumer demand.