Quote on the latest IIP release by Pranjal Ghate, Economist, Brickwork Rating
Below the Quote on the latest IIP release by Pranjal Ghate, Economist, Brickwork Rating
"India's industrial production grew by 6.7% year-on-year in September, moderating slightly from the previous month. The finer details reveal that the downward drag was entirely driven by a 6.2% contraction in the Mining and Quarrying sector, heavily disrupted by late monsoon conditions. Conversely, Manufacturing and Electricity remained highly resilient, posting strong growth of 7.6% and 11.2%, respectively. The surge in electrical equipment, rubber, plastics, and motor vehicles points to robust industrial and business demand. Furthermore, the strong performance in the electricity segment was anchored by record solar production, which surged nearly 49%, paired with strong thermal power and coal output to meet peak consumption demands. Looking ahead, if monsoon disruptions recede as expected, a recovery in mining will complement this sustained manufacturing and electricity production strengths. The festive consumption peaks will also likely drive an acceleration in headline industrial growth over the coming quarter."
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