Factory output grows 3.2 per cent in October

India's factory output registered a growth of 3.2 per cent in the month of October led by growth in primary goods. The growth comes on the back of 4.5% rise witnessed in the same period last year as the economy was recovering from the first round of lockdown-induced contraction.

The consumer durables sector failed to capture the enthusiasm around the festive period and fell in October. It contracted by more than 6 per cent for the month and showed weakness in one of the areas where chip shortage has caused problems for the industry.

Manufacturing sector's output grew 2 per cent in October 2021 while mining output surged by 11.4 per cent, and power generation went up by 3.1 per cent.


“Industrial growth printed at a stable yet tepid 3.2% in October 2021 (ICRA exp: 2.9%), with the festive season boost being negated by the supply side issues afflicting the auto sector, as well as a higher base. The disaggregated data does not provide convincing signals of the recovery becoming durable and broad-basing further, with capital goods and consumer durables reporting a YoY contraction in October 2021," said Aditi Nayar, chief economist, ICRA.

During April-October this year, the IIP grew 20 per cent against a 17.3 per cent contraction in the same period last year.