India’s Index of Industrial Production (IIP) rose by 3.2 percent in October this year, the slowest in the past eight months, according to government data released on Monday, December 13.
The IPP, however, recorded a growth of 20 percent during the April-October period of the fiscal year 2021-22, against a contraction of 17.3 percent in the corresponding period of the previous year.
The output of the manufacturing sector, which accounts for over three-quarters of the total weight of the index, grew by two percent in October as against three percent in September and 4.5 percent a year ago. Mining output rose 11.4 percent in October against a one percent contraction a year ago, and power generation increased by 3.1 percent as against 11.2 percent growth a year ago.
“Despite 25.3 percent growth in Goods and Service Tax (GST) collection and 7.5 percent growth in core infrastructure sectors, October 2021 IIP growth was impacted by the base effect and grew by 3.2 percent only over 4.5 percent in October 2020. The IIP growth has been very fragile and even festive demand was not able to uplift IIP growth in October 2021,” India Ratings said in its statement.