India's industrial production growth remained subdued for the third straight month and expanded by 1.4 per cent in November, mainly due to the waning low base effect, while the mining sector showed good performance.
The manufacturing sector, which constitutes 77.63 per cent of the Index of Industrial Production (IIP), grew 0.9 per cent in November, according to data released by the National Statistical Office (NSO) on Wednesday.
The mining sector output rose five per cent in November, while power generation increased 2.1 per cent. The factory output recorded double-digit growth in the four months from May to August this fiscal. Then it slipped to 3.3 per cent in September this fiscal and recorded a growth of four per cent, mainly due to waning low base effect.
In November 2021, the IIP stood at 128.5 points compared to 126.7 points in the same month in 2020. The index stood at 128.8 points in November 2019, as per the NSO data.
Thus, the data showed fading of the low base effect. The IIP growth witnessed double-digit growth from May onwards this year on the back of the lower base effect.
The IIP had contracted by 1.6 per cent in November 2020.During April-November this year, the IIP grew 17.4 per cent against a 15.3 per cent contraction in the same period last year. The data showed that industrial production recovered in September 2020 and surpassed the pre-pandemic level of September 2019. The IIP had grown by one per cent in September 2020.
Industrial production plunged 18.7 per cent in March last year following the COVID outbreak and remained in the negative zone till August 2020.