Industrial Production for November 2019

Green shoots in Indian economy as industrial output revives in November 2019.

Published monthly by Ministry of Statistics and Programme Implementation(MOSPI). Updated till November 2019 (Published on January 10th, 2020).

Note: The MoM% has been calculated over the seasonally-adjusted series.

Recent Data Trend

India's industrial production index revives in November 2019, as it grew by 1.8% YoY breaching the negative territory. Industrial production output in India has witnessed a series of ups and downs since November 2018, followed by a continuous contraction for three months starting in August 2019 till October 2019. Component wise production activities has improved in all the sectors except for in electricity and coke and refined petroleum products.

By use-based, the slowdown in industrial output in all the final goods has narrowed except for intermediate goods. Interestingly, the positive growth rate in the intermediate goods since April 2019 indicates a strong production supply chain, but the declining growth rate in the output of final products, especially the capital goods in the last few months cites a weaker transfer of production supply. However, the narrowing of slowdown in the production of use-based goods in November 2019 has reversed this trend.

The positive YoY growth rate in the IIP data for November 2019 could be because of the base effect, as the same in November 2018 was merely 0.2%. Nevertheless, this rebound, along with the narrowing of a slowdown in the core industries as witnessed in its recent release, hints signs of recovery in the Indian economy from a prolonged slowdown started in April-June quarter of 2018. 

Brief Overview

Index of Industrial production is published by the Ministry of Statistics and Programme Implementation every month. The current base year of the index is 2011-12=100. The index shows the changes in the production volume of different industrial commodities. The sub-components of IIP are- Mining, Manufacturing, and Electricity. The IIP is also classified according to its use namely, Primary Goods, Capital Goods, and Intermediate Goods. It is an essential measure of growth as it records the level of industrial activity in the economy.

For more information visit the official government website

IIP- Use based classification

Industrial Production-Quarterly

India's industrial production index revives in November 2019, as it grew by 1.8% YoY breaching the negative territory. Industrial production output in India has witnessed a series of ups and downs since November 2018, followed by a continuous contraction for three months starting in August 2019 till October 2019. Component wise production activities has improved in all the sectors except for in electricity and coke and refined petroleum products.

By use-based, the slowdown in industrial output in all the final goods has narrowed except for intermediate goods. Interestingly, the positive growth rate in the intermediate goods since April 2019 indicates a strong production supply chain, but the declining growth rate in the output of final products, especially the capital goods in the last few months cites a weaker transfer of production supply. However, the narrowing of slowdown in the production of use-based goods in November 2019 has reversed this trend.

The positive YoY growth rate in the IIP data for November 2019 could be because of the base effect, as the same in November 2018 was merely 0.2%. Nevertheless, this rebound, along with the narrowing of a slowdown in the core industries as witnessed in its recent release, hints signs of recovery in the Indian economy from a prolonged slowdown started in April-June quarter of 2018.