Winning Bizness Economic Desk

The country’s industrial production grew 0.4 per cent Year-on-Year (YoY) in October of this year, its slowest pace of growth in 14-months. This is because of a deceleration in manufacturing and mining and electricity output, data from the Ministry of Statistics and Programme Implementation (MoSPI) showed.

October’s industrial output was lower than the 3.7 per cent expansion registered in the year-ago period.

In September, India’s industrial production rose four per cent annually, according to MoSPI’s revised estimates for the month (up from 3.2 per cent).

Here, a point that needs to be noted is that the October industrial output growth is the slowest since August 2024 when no increase was witnessed in the Index of Industrial Production (IIP).

The country’s core infrastructure sector which accounts for over two-fifths of industrial output posted zero growth in October, with production flat YoY, the provisional commerce ministry data released earlier this month showed.

Manufacturing, which accounts for nearly 78 per cent of the IIP, grew 1.8 per cent YoY in October, down from the 5.6 per cent in September and 4.4 per cent (revised) from a year earlier.

Mining output shrank 1.8 per cent YoY in October as compared to a 0.4 per cent dip in September and a marginal 0.9 per cent rise in October of last year.

Electricity generation also slipped southward 6.9 per cent in October as against a 3.1 per cent northward movement in the previous month of September and a two per cent climb in the same year-ago month.

Across use-based categories, capital goods, intermediate goods, infrastructure/construction goods and consumer durables clocked sequential growth while both primary goods and consumer non-durables slid during the month.

Capital goods production climbed up 2.4 per cent in October, down from a 5.4 per cent expansion in the previous month, the provisional data showed.

Intermediate goods output increased marginally by 0.9 per cent annually in October, as compared to a 6.3 per cent increase the previous month.

Infrastructure/construction goods output increased 7.9 per cent annually in October as compared to a 10.6 per cent expansion in the previous month. Primary goods production registered a marginal slippage of 0.6 per cent in October as compared to a 1.3 per cent increase in the previous month.

India’s Manufacturing Share Projected to Rise to 25 Per Cent of GDP by 2047

The country’s manufacturing sector’s share in the Gross Domestic Product (GDP) is poised to move sharply northward from the present about 17 per cent to about 25 per cent by 2047, a report stated.

Prepared by Boston Consulting Group (BCG) and Z47, the report identified defence, electronics, automotive and electric vehicles, energy and pharma as the five sectors that could anchor a USD 25-trillion industrial opportunity by 2047.

The report pointed to the rapid expansion in electronics and semi-conductors with the country’s semi-conductor demand projected to expand from USD 33-billion in 2022 to USD 117-billion by 2030.

Over 99 per cent of mobile phones sold in India are now domestically produced, up from the 26 per cent in 2014-15, reflecting the impact of the Production Linked Incentive Schemes.

“This is not just about sale; its about strategic self-reliance,” said Mr Ishang Jawa, Managing Director and Partner at BCG.

Electric vehicle sales climbed up from about 50,000 in 2016 to over two-million in 2024, representing roughly nine per cent of the global EV stock, the report said.

It also pointed to a USD 100-billion export opportunity in auto components.

The report emphasised the importance of scaling-up R&D and design, strengthening talent and reverse brain-drain, developing world-class cluster eco-systems and deepening private sector and start-up participation to sustain momentum and convert policy into lasting global leadership.

Amazon to Invest USD 35-bn in India by 2030

Amazon Inc has announced that it would invest USD 35-billion in the country in the coming years until 2030.

Making this announcement at its annual India event Smbhav, Amazon said that the investment would be in all of the company’s operations in India spanning its retail operations and its cloud and AI wings, Amazon Web Services.

This comes a day after Microsoft Corporation committed a USD 17.5-billion investment, much of it targeted at data centre and AI infrastructure build-out.

This could also likely be the case for Amazon which is already India’s largest foreign direct investor.

Amazon’s investment announcement comes as the company attempts to enter the quick-commerce segment where the big players are Blinkit, Zepto and Swiggy which have all become prominent players in the segment.

A point that requires highlighting here is that Amazon has already invested in excess of USD 40-billion in the country since its entry into the market.

Amazon said that it would create 3.8-million “direct, indirect, induced and seasonal jobs” across the country by 2030.

Car Sales Increase 20 Per Cent in November

Car sales increased 20 per cent last month which is significant as it is the post-festive season when there is usually a slowdown in demand.

Demand for cars grew by nearly a fifth even after the festive season as reduced tax continued to be a driver of sales, attracting buyers.

Car sales moved northward 19.71 per cent YoY in November of this year even as those of two-wheelers declined 3.10 per cent, according to VAHAN data released by the Federation of Automobile Dealers Associations (FADA).

The VAHAN website collates vehicle registration data which is a stronger indicator of demand than despatches to dealerships from the manufacturing facility.

In November, two-wheeler sales stood at 25,46,184 units while three-wheeler sales were up 23.67 per cent YoY at 1,33,951 units.

Four-wheeler sales were up 19.71 per cent YoY at 3,94,152 units while tractor sales were up 56.55 per cent to 1,26,033 units.

CV sales were up 19.94 per cent YoY at 94,935 units while overall retail sales were up 2.14 per cent YoY at 33,00,832 units.

“November 2025 defied the conventional post-festive slowdown, delivering a resilient performance despite an unusually high base,” FADA President Mr C S Vigneshwar said in a statement.

The GST rate cuts and retail offers by auto-makers and dealers alike sustained footfalls beyond the festive period, leading to higher conversion into sales in November, Mr Vigneshwar said.

India’s Forex Reserves Rise to USD 687-bn on Higher Gold Prices

The country’s foreign exchange reserves have risen marginally in the first week of December, due to elevated gold prices.

The forex kitty rose USD 1-billion to USD 687.3-billion in the week ending December 5, according to Reserve Bank of India (RBI) data.

In the previous reporting week, the reserves slid by USD 1.9-billion to USD 686.2-billion.

For the week ended December 5, the Foreign Currency Assets (FCAs), a major component of the reserves, decreased by USD 151-million to USD 557-billion, the data showed.

Expressed in dollar terms, the FCAs include the effects of appreciation or depreciation of non-US units, such as the Euro, Pound and Yen, held in the foreign exchange reserves.

Here, a point that needs highlighting is that India’s forex reserves can cover imports of over 11-months.

The value of gold reserves moved northward by USD 1.2-billion to USD 107-billion during the week. The Special Drawing Rights (SDRs) also climbed up by USD 93-million to USD 18.7-billion.

India’s reserve position with the International Monetary Fund (IMF) was steady at USD 4.7-billion.