SME Times News Bureau | 13 Dec, 2018
India's industrial output to 8.1 per cent in October from a
rise of 4.46 per cent in September and 1.8 per cent during the corresponding
period of the previous fiscal, official data showed on Wednesday.
"The cumulative growth for the period April-October
2018 over the corresponding period of the previous year stands at 5.6 per
cent," the 'Quick Estimates' of IIP released by the Ministry of Statistics
and Programme Implementation said.
Higher production in the manufacturing sector, especially of
capital goods and consumer durables, pushed industrial production in the month.
On a YoY (year-on-year) basis, the manufacturing sector's output expanded at
7.9 per cent, while mining production edged-up by 7 per cent and the sub-index
of electricity generation increased by 10.8 per cent.
Among the six use-based classification groups, the output of primary goods
which has the highest weightage of 34.04 grew by 6 per cent. The output of
intermediate goods, which has the second highest weightage, inched up by 1.8
Similarly, the output of consumer non-durables rose during the month by 7.9 per
cent and that of consumer durables by 17.6 per cent.
In addition, infrastructure or construction goods output increased by 8.7 per
cent and capital goods by 16.8 per cent.
"The considerable uptick in industrial growth in October 2018, which is somewhat
sharper than expected, reflects the impact of inventory adjustment to the later
start to the festive season and a favourable base effect," said Aditi
Nayar, Principal economist, ICRA.
"In ICRA's view, the pickup in industrial growth in October 2018 is likely
to be temporary, as portended by the considerable deterioration in the growth
performance of the available lead indicators such as auto production,
electricity generation and Coal India Limited's output in November 2018."