India’s industrial production witnessed a slowdown in December 2024, with a growth rate of 3.2 per cent, as per data released by the Ministry of Statistics and Programme Implementation (MoSPI).
This marked a decline from the 5.2 per cent growth recorded in November 2024, indicating a moderate expansion in the country’s manufacturing, mining, and power sectors.
The Index of Industrial Production (IIP), which measures factory output, reflected this deceleration. The manufacturing sector’s output grew by 3.0 per cent in December, showing a slower pace compared to the 4.6 per cent recorded in the same period the previous year.
Meanwhile, mining production rose by 2.6 per cent, and power generation saw a higher increase of 6.2 per cent.
The industrial sector has been experiencing fluctuations, with growth rates varying month to month. In December 2023, industrial output had expanded by 4.4 per cent, showcasing a slightly better performance than the latest figures.
The overall industrial growth in the April-December period of the current financial year stood at 4.0 per cent, which is notably lower than the 6.3 per cent recorded in the corresponding period of the previous year.
The slowdown in manufacturing output is a key concern, as the sector plays a significant role in overall industrial production. Factors such as global demand, domestic consumption, and supply chain dynamics influence the sector’s performance.
The decline in mining output growth also indicates challenges in resource extraction and utilisation. However, the power sector’s steady growth suggests continued demand for electricity across industries and households.
The government has been focusing on boosting industrial activity through various initiatives and policy measures. The production-linked incentive (PLI) scheme, infrastructure development, and efforts to attract foreign investment are aimed at strengthening the manufacturing sector.
Despite these measures, economic uncertainties, inflationary pressures, and global market conditions continue to impact industrial performance.
While the slowdown in industrial production raises concerns about economic momentum, experts believe that sustained policy support and a recovery in demand could help improve growth in the coming months.
The performance of the manufacturing and mining sectors will remain critical in determining the overall trajectory of industrial output.
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