Government data released on Wednesday showed India's industrial output grew 7.8% year-on-year in December, with notable contributions from the manufacturing and mining sectors. Economists had expected a 5.5% increase; November's figure was revised to a 7.2% gain.
Detailed sector performance
- Manufacturing: Output in the manufacturing sector rose 8.1% year-on-year in December, compared with a revised 8.5% increase in November.
- Electricity generation: Electricity production climbed 6.3% year-on-year in December, reversing a 1.5% decline recorded a month earlier.
- Mining: Mining activity increased 6.8% year-on-year in December, up from a revised 5.8% rise in November.
- Consumer durables: Output of consumer durables, a category that includes items such as cars and phones, grew 12.3% year-on-year in December versus a revised 11.2% growth in November.
- Consumer non-durables: Production of consumer non-durables, including food items and toiletries, rose 8.3% year-on-year in December compared with a revised 8.0% increase in November.
- Capital goods: Capital goods output registered an 8.1% year-on-year rise in December, against a revised 10.1% growth in November.
Period-to-date growth
On a cumulative basis, industrial output for the April-December period grew 3.9% year-on-year, marginally lower than the revised 4.1% increase recorded in the same period a year earlier.
Context and implications
December's figures show a broad-based improvement across several major categories of industrial activity, with manufacturing and consumer durables among the strongest contributors. Electricity generation's turnaround from a contraction in November to a positive print in December is a notable development for sectors dependent on power supply. The capital goods sector continued to expand year-on-year, though at a slower pace than the prior month's revised reading.
While the single-month performance in December outpaced expectations, the April-December aggregate points to more moderate growth over the longer period covered by the data.