INDIA INDUSTRIAL OUTPUT GROWS BY 4% IN SEP, DRIVEN BY MFG SECTOR

Industrial activity, as measured by the Index of Industrial Production (IIP), grew at 4% in September. While technically a three-month low, the September IIP growth number is not very different from what it was in July and August at 4.3% and 4.1% respectively.

- Auhona Mukherjee

Of the three broad components of IIP, an uptick in manufacturing largely offset a contraction in mining activity and a slowdown in growth in electricity. Manufacturing, which has the highest weightage of 77.6% in the index, grew at 4.8%, up from 3.8% in August. Mining and quarrying, with a weight of 14.4%, contracted by 0.5%, compared to an expansion of 6.6% in August. Electricity, having a weight of 8%, grew at 3.1%, sl