IIP growth hit 2-year high of 6.7% in November

On an end-use basis, three of six IIP segments clocked double-digit growth, including capital goods, which rose at a six-month high rate of 10.4 per cent, and infrastructure and construction items that were up 12.1 per cent, the swiftest in four months.

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Primary goods grew 2 per cent and intermediate goods’ output was up 7.3 per cent.

Consumer durables recorded a 10.3 per cent uptick, the fastest since last November and an about-turn from October's 1.3 per cent contraction. Consumption was, in fact, a prime driver of the manufacturing spurt in November, as consumer non-durables production reached the highest level since December 2023 with a 7.3 per cent year-on-year rise, the fastest since October 2023.

“All six use-based sectors expanded after a gap on nine months. The high consumer non-durable growth after the festive season suggests that the inventories with wholesaler and manufacturer have exhausted, and manufacturers believe demand is likely to continue,” said India Ratings and Research Chief Economist Devendra Kumar Pant.