IIP growth at subdued 3.2 percent  in October
IIP growth at subdued 3.2 percent in October
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MUMBAI: For the second month in a row, India's industrial output growth slowed to 3.2 percent in October, owing to the declining low base impact, but the mining, electricity, and manufacturing sectors performed strongly. According to data provided by the National Statistical Office (NSO) on Friday, the manufacturing sector expanded two percent in October, accounting for 77.63 percent of the Index of Industrial Production (IIP).

The mining sector output rose 11.4 percent in October, while power generation increased 3.1 percent. The factory output recorded double-digit growth in the 4 months from May to August this year. Then it decliend to 3.3 percent in September this year and further to 3.2 percent, mainly on account of  waning low base effect. In October 2021, the IIP stood at 133.7 points compared to 129.6 points in the same month last year.

The index stood at 124 points in October 2019, according to NSO data. Thus, the data indicated waning of the low base effect. The IIP growth witnessed double-digit growth from May onwards this year, mainly due to the lower base effect. The IIP had grown by 4.5 percent in October 2020. During April-October this year, the IIP advanced 20 percent against a 17.3 percent contraction in the same period last year. The data showed that industrial production recovered in September 2020 and surpassed the pre-pandemic level of September 2019.

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