India’s factory output recovers in November, rises by 1.8%
In what seems to be a positive development for the Indian economy, the country’s factory output for November has turned positive after registering negative growth for two consecutive months.
The Index of Industrial Production (IIP) for the month of November grew by 1.8 per cent, signalling a reversal of the manufacturing and production slump witnessed over the last few months.
Manufacturing activity also registered a growth of 2.7 per cent against a contraction of 2.1 per cent in October. Mining activity also registered a positive growth of 1.7 per cent in November, significantly rebounding from a contraction of eight per cent in October.
It may be noted that the growth of primary products expanded 0.3 per cent against a contraction of six per cent in October. Production of capital goods in November saw a contraction of 8.6 per cent against a fall of 21.9 per cent in October.
Meanwhile, consumer durables fell 1.5 per cent in November against a fall of 18 per cent in October.
While expansion in factory output and manufacturing activity signal positivity on the supply side, the government still has to resolve demand contraction across sectors.
However, marginal expansion is a good sign of the Indian economy as it is one of the first indicators of improving productivity.
All eyes will now be on the upcoming budget, where the government is expected to introduce more sector-specific boosters for economic revival.
