India's industrial sector marked a significant expansion of 3.1% year-on-year in September, as highlighted by the National Statistics Office (NSO) on Wednesday. This uptick has been bolstered by robust factory output across various segments. Within the industrial sector, manufacturing experienced a remarkable 3.9% growth during the same period.
Additionally, electricity generation saw a modest increase of 0.5%, while mining output rose slightly by 0.2%. For the broader timeframe from April to September, the industrial output in India exhibited an impressive 4% increase year-on-year. Notable performances in specific sub-sectors during September included a 5.3% rise in the manufacture of coke and refined petroleum products, an impressive 18.7% increase in electrical equipment production, and a growth of 4.4% in food products. The official figures reflecting India's industrial output correspond with the most recent manufacturing purchasing manager index (PMI) report, unveiled in early November by S&P Global.
The seasonally adjusted India Manufacturing PMI observed a rise to 57.5 in October, an increase from 56.5 in September, signaling a substantial and accelerated improvement in operating conditions. Readings exceeding 50 indicate growth, while those below suggest contraction. Manufacturers in India display heightened optimism, as reported by S&P Global: 'Optimism (in October) concerning business activity, profitability, and capital expenditures increased alongside strong hiring intentions.
Manufacturers exhibited greater optimism regarding capital investment and research and development compared to their counterparts in the services sector.'.