India’s Industrial Growth in September 2024
In September 2024, India’s industrial sector showed significant growth, with the Index of Industrial Production (IIP) increasing by 3.1%. This was a notable improvement from August’s slight decline of 0.1%. The overall index rose to 146.7 from 142.3 in September 2023, driven by strong performances in key industries, particularly manufacturing.
Sector Performances
The three core sectors—Mining, Manufacturing, and Electricity—had varied results. Mining grew by 0.2%, Manufacturing surged by 3.9%, and Electricity increased by 0.5%. Within manufacturing, the “Manufacture of coke and refined petroleum products” grew by 5.3%, “Manufacture of basic metals” by 2.5%, and “Manufacture of electrical equipment” by an impressive 18.7%.
Use-Based Classification
Examining the IIP growth through a use-based classification, Primary Goods grew by 1.8%, Capital Goods by 2.8%, and Intermediate Goods led with a 4.2% increase. Infrastructure and Construction Goods rose by 3.3%, Consumer Durables by 6.5%, and Consumer Non-Durables by 2.0%. Intermediate Goods, Consumer Durables, and Primary Goods were the top contributors to the growth.
Data Accuracy and Future Releases
The IIP data is compiled monthly and revised for accuracy, with September’s data achieving a 91% response rate. The next IIP data release, covering October 2024, is scheduled for December 12.
Doubts Revealed
Industrial Growth -: Industrial growth refers to the increase in production and economic activity in factories and industries. It means more goods are being made and sold, which is good for the economy.
Manufacturing -: Manufacturing is the process of making products in large quantities using machines. It includes making things like cars, clothes, and electronics.
Index of Industrial Production (IIP) -: The Index of Industrial Production (IIP) is a number that shows how much industries are producing. A higher number means more production, which is good for the economy.
Coke -: Coke is a type of fuel made from coal. It is used in industries, especially for making steel.
Consumer Durables -: Consumer durables are products that last a long time, like refrigerators, washing machines, and TVs. They are not bought frequently.
Use-based classification -: Use-based classification is a way to group products based on how they are used, like consumer goods or capital goods. It helps understand which types of products are growing in production.
