New Delhi: Belying expectations of a slowdown due to demonetisation, industrial production in November grew by 5.7 percent compared to a contraction of 3.4 percent in the same month a year ago.
Factory output measured in terms of Index of Industrial Production (IIP) got a push in November 2016 due to better performance of manufacturing, mining and electricity sectors coupled with larger offtake of capital goods, considered a barometer of investment.
Following demonetisation of Rs 1,000 and Rs 500 notes announced on November 8, 2016, it was feared that cash crunch will hit all sectors.
According to data released by the Central Statistics Office today, IIP for the month of October last year was revised slightly upwards to a contraction of 1.8 percent from provisional estimates of (-) 1.9 percent released last month.
As per the data, IIP growth during April-November period this fiscal remained almost flat at 0.4 percent compared to 3.8 percent a year ago.
Manufacturing sector, which constitutes over 75 percent of the index, grew at 5.5 percent in November compared to a decline in output by 4.6 percent earlier.
However, during the April-November period the sector recorded a contraction of 0.3 percent compared to a growth of 3.9 percent.
Similarly, electricity generation grew at 8.9 percent in November compared to a meagre 0.7 percent a year ago. Mining output grew 3.9 percent in November compared to 1.7 percent same month a year ago.
Capital goods production increased by 15 percent in November compared to a decline in production by 24.4 percent earlier.
As per use-based classification, growth rates in November 2016 over November 2015 are 4.7 percent in basic goods and 2.7 percent in intermediate goods.
Consumer durables and consumer non-durables recorded growth of 9.8 percent and 2.9 percent respectively, with the overall growth in consumer goods being 5.6 percent.
In terms of industries, 16 out of 22 industry groups in the manufacturing sector have shown growth during the month of November 2016 as compared to the corresponding month of the previous year.
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Updated Date: Jan 12, 2017 19:04:38 IST