India’s industrial output growth slowed to a four-month low of 6.7 per cent in September, led by a broad-based slowdown across all major sectors, according to data released by the National Statistics Office (NSO) on Wednesday.
This is the weakest reading since May, when the Index of Industrial Production (IIP) grew 5 per cent. Growth for August was revised down to 7.8 per cent from the 8 per cent estimated earlier. In September last year, industrial output had grown 6.1 per cent.
The September index stood at 124.3, compared with 123.1 in the preceding month.
Three of the four broad sectors — manufacturing, electricity and gas supply, and water supply and waste management — slowed in September compared with August. Mining and quarrying witnessed a deeper contraction, which dragged the index further down.
Growth in manufacturing, which carries a weight of about 76 per cent in the IIP, eased to 7.6 per cent from a revised 8.6 per cent in August on account of an unfavourable base.
September’s manufacturing growth was the slowest since May, when the sector grew 5.2 per cent, and it ended a three-month run of growth above 8 per cent.
Within manufacturing, 17 of the 23 industry groups at the two-digit level registered positive growth during the month. As many as eight sub-segments recorded double-digit expansion in September.
Electrical equipment grew 33.9 per cent, motor vehicles, trailers and semi-trailers 19 per cent, and rubber and plastic products 19.9 per cent. The NSO named these three as the top contributors to growth.
On the other hand, six industry groups contracted. These included wood and wood products (-10.5 per cent), pharmaceuticals (-8.9 per cent) and wearing apparel (-5.2 per cent), among others.
Electricity and gas supply remained the fastest-growing sector at 11.2 per cent, down from a revised 12.3 per cent in August.
Electricity generation from non-renewable sources rose 16.5 per cent. Renewable generation slowed sharply to 4.3 per cent from 15.4 per cent in August. Gas supply contracted 6.7 per cent.
Water supply, sewerage and waste management grew 5.8 per cent, down from 6.3 per cent in August and the slowest since May, when it grew 5.5 per cent.
Mining and quarrying contracted 6.2 per cent, the sharpest decline since September 2023, when it shrank 17 per cent. It was the third straight month of contraction for the sector.
Under the use-based classification, five of the six categories — barring consumer non-durables — slowed in September from August.
Capital goods growth fell to 10.4 per cent from 15.9 per cent, its slowest pace this financial year. Consumer durables growth nearly halved to 6 per cent from 10.5 per cent, the weakest since April, even as the festive season got under way.
Growth in intermediate goods, infrastructure and construction goods, and primary goods all edged down in September.
On the other hand, consumer non-durables grew a modest 1.4 per cent, thus reversing two months of contraction.
In April-September, industrial output grew 6.8 per cent, compared with 4.4 per cent in the same period last year.
