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India’s Industrial Production Growth Slows To 3.2% In December; Manufacturing And Electricity Lead

New Delhi: India’s Index of Industrial Production (IIP) grew by 3.2% in December 2024, compared to 5.2% in the previous month, according to quick estimates released by the Ministry of Statistics and Programme Implementation on Wednesday.

Sector-Wise Growth Performance

The three key industrial sectors recorded the following growth rates in December 2024:

  • Mining: 2.6%
  • Manufacturing: 3.0%
  • Electricity: 6.2%

The overall IIP index for December 2024 stood at 157.2, compared to 152.3 in December 2023.

Manufacturing Sector: Key Contributors

Within the manufacturing sector, 16 out of 23 industry groups (NIC 2-digit level) posted positive growth. The top three contributing industries were:

  • Basic Metals: 6.7%
  • Electrical Equipment: 40.1%
  • Coke & Refined Petroleum Products: 3.9%

Notable items driving growth in these categories include:

  • Basic Metals: MS Blooms, Billets, Ingots, Galvanized Steel Products, Pipes, and Tubes.
  • Coke & Refined Petroleum Products: Diesel, Aviation Turbine Fuel (ATF), and Naphtha.

Use-Based Classification of Industrial Growth

The sector-wise indices for December 2024 were as follows:

  • Primary Goods: 157.7
  • Capital Goods: 114.5
  • Intermediate Goods: 169.3
  • Infrastructure/Construction Goods: 191.7
  • Consumer Durables: 124.0
  • Consumer Non-Durables: 166.0

Looking Ahead

The IIP data for January 2025 is scheduled for release on March 12, 2025. While the industrial growth rate slowed in December, sustained performance in manufacturing and electricity continues to support the economy. Industry watchers will be keenly observing upcoming data to assess overall economic momentum.

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