Industrial output grew 3.2 per cent, the lowest in eight months, in October with an uptick in mining and electricity output. Subdued investment weighed on the Index of Industrial Production (IIP) despite festive demand, data released by the National Statistical Office showed on Friday.
Economists said weak consumption and investment trends imply that the heavy lifting to take the economy out of sluggish growth has to be done by the government. “Despite 25.3 per cent growth in GST collection and 7.5 per cent growth in core infrastructure sectors, October 2021 IIP growth was impacted by the base effect and grew 3.2 per cent only (October 2020: 4.5 per cent). The IIP growth has been very fragile and even festive demand was not able to uplift IIP growth in October 2021,” Devendra Kumar Pant, chief economist, India Ratings said. The output of the manufacturing sector, which accounts for over three-fourth of the total weight of the index, grew 2 per cent in October as against 3 per cent in September and 4.5 per cent a year ago. Mining output rose 11.4 per cent in October against a 1 per cent contraction a year ago and power generation increased 3.1 per cent as against 11.2 per cent growth a year ago.