India's industrial production clocks 4 per cent growth in September

New Delhi, Oct 28 (IANS) India's industrial production recorded a 4 per cent growth in September this year compared to the same month last year, driven by a strong performance in the manufacturing sector, according to data released by the Ministry of Statistics on Tuesday.

The industrial growth rate, based on the Index of Industrial Production (IIP), had accelerated to 4 per cent in August from a four-month high of 3.5 per cent in July, which, in turn, had surged from 1.5 per cent in June. The 4 per cent growth rate has been maintained in September as well.

The data showed that the manufacturing sector, which provides quality jobs for the young graduates passing out of the country’s universities and engineering institutes, registered a robust 4.8 per cent growth in September this year over the same month of the previous year. This is higher than the corresponding figure of 3.8 per cent registered in August.

Within the manufacturing sector, 13 out of 23 industry groups recorded a positive growth in September this year compared to the same month of the previous year. The top three positive contributors for the month are – "Manufacture of basic metals" (12.3 per cent), "Manufacture of electrical equipment" (28.7 per cent), and "Manufacture of motor vehicles, trailers and semi-trailers" (14.6 per cent).

Electricity generation recorded a 3.1 per cent growth in September while the mining sector proved to be a laggard with a negative growth of are (-)0.4 per cent during the month,

The figures on use-based classification show that the production of capital goods, which comprise machines used in factories, went up by 4.7 per cent in September over the same month of the previous year. This segment reflects the real investment taking place in the economy, which has a multiplier effect on the creation of jobs and incomes going ahead.

The production of consumer durables such as refrigerators, air conditioners and TV sets jumped by a robust 10.2 per cent during the month, reflecting the rise in demand for these products due to rising incomes enabling buyers to improve their living standards.

The infrastructure and construction sector clocked a double-digit surge for the second month in a row at 10.2 per cent in September, compared with the same month of the previous year, on the back of big-ticket government projects being implemented in the highways, railways and ports sectors.

--IANS

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