The industrial growth rate of the manufacturing sector, which accounts for more than three-quarters of the Index of Industrial Production (IIP), was recorded at 4.1 percent in October. The sector plays a key role in providing quality jobs to the young graduates passing out from engineering institutes and universities of the country.
Within the manufacturing sector, 18 out of 23 industry groups recorded positive growth in October compared to the same month last year. The top three positive contributors are – “Manufacture of basic metals” (3.5 percent), “Manufacture of electrical equipment” (33.1 percent) and “Manufacture of coke and refined petroleum products” (5.6 percent).
For October, output in the power and mining sectors recorded growth of 2 percent and 0.9 percent, respectively. Data based on consumer classifications show that production of capital goods, which includes machinery used in factories, increased by 3.1 percent.
This segment reflects the real investment in the economy which has multiple impact on job creation and income going forward. Production of consumer durables such as electronic goods, refrigerators and TVs also rose 5.9 percent during September, reflecting strong consumer demand for these items amid rising incomes.
Production of non-durable consumer goods such as soap and cosmetics rose by 2.7 percent during the month. Production of intermediate goods rose 3.7 percent during October compared to the same month last year, while infrastructure/construction goods rose 4 percent, the data further showed.