No demonetisation effect seen in November as IIP rises to 5.7%

Growth was driven up by a surge in capital goods production

Belying expectations of a slowdown due to demonetisation, industrial production in November grew by 5.7% compared to a contraction of 3.4% in the same month a year ago.

Factory output measured in terms of Index of Industrial Production (IIP) got a push in November 2016 due to better performance of manufacturing, mining and electricity sectors coupled with larger offtake of capital goods, considered a barometer of investment.

Following demonetisation of Rs 1,000 and Rs 500 notes announced on November 8, 2016, it was feared that cash crunch will hit all sectors.

According to data released by the Central Statistics Office today, IIP for