India’s industrial production growth remained subdued for the third straight month and expanded 1.4 per cent in November mainly because of the waning low base effect.

The manufacturing sector, which constitutes 77.63 per cent of 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 3,2 per cent in October, mainly due to waning low base effect.

““Significant slowdown in the manufacturing sector growth, is a matter for concern as this will also have an impact on employment. The manufacturing sector was constrained by severe power outages due to a supply shortage in coal in addition to the supply disruptions in semiconductors. With the continued constraints, the growth outlook for IIP does not look bright for December as well,” M. Govinda Rao, chief economic adviser at Brickwork Ratings said.

Sunil Kumar Sinha, principal economist, India Ratings and Research, said “The the rise in Covid cases will adversely impact the normalisation of economic activities. Therefore, we expect the IIP growth to be in low single digits in the near term.”

“The latest economic indicators are pointing towards an urgent need of demand stimulation measures to sustain the economic recovery, ” Rajani Sinha, chief economist & national director – research, Knight Frank India, said.

“In the upcoming union budget, the Government should look at measures to boost private consumption, which can be the bellwether of India’s economic recovery.”

World Bank

The World Bank has retained India's economic growth forecast for the current fiscal at 8.3 per cent as the recovery is yet to become broad-based. The Centre has projected growth of 9.2 per cent this fiscal.