New Delhi: Industrial production in India picked up pace in April, starting the new financial year on a stronger note, with all three major sectors – manufacturing, mining and electricity – contributing to the recovery. Growth as measured by the Index of Industrial Production (IIP) was 4.9% in April compared with 4.5% in March, data released by the statistics office on Tuesday showed.
“As expected, mining and manufacturing drove the uptick in IIP growth in April. The rebound in capital goods to a double-digit growth was driven by a favourable base and the performance of commercial vehicles,” said Aditi Nayar, principal economist at ICRA.
Mining expanded 5.1% in April compared with 3% a year earlier, while manufacturing, which constitutes 77.63% of IIP, grew 5.2% versus 2.9% a year ago. Of the 23 industry groups in the manufacturing sector, 16 showed growth, led by computers, electronics and optical products.
“Performance in April has been helped by a low base effect for consumer durables and capital goods. But some industries like electronics, auto, pharma, food, metals and non-metallic products continue to do well,” CARE chief economist Madan Sabnavis said in a statement.
Sugar, construction machines, stainless steel utensils, commercial vehicles and steroids and hormonal preparations grew, while output of gold jewellery, mobile instruments, copper bars and knitted readymade garments shrank.
“As expected, mining and manufacturing drove the uptick in IIP growth in April. The rebound in capital goods to a double-digit growth was driven by a favourable base and the performance of commercial vehicles,” said Aditi Nayar, principal economist at ICRA.
Mining expanded 5.1% in April compared with 3% a year earlier, while manufacturing, which constitutes 77.63% of IIP, grew 5.2% versus 2.9% a year ago. Of the 23 industry groups in the manufacturing sector, 16 showed growth, led by computers, electronics and optical products.
“Performance in April has been helped by a low base effect for consumer durables and capital goods. But some industries like electronics, auto, pharma, food, metals and non-metallic products continue to do well,” CARE chief economist Madan Sabnavis said in a statement.
Sugar, construction machines, stainless steel utensils, commercial vehicles and steroids and hormonal preparations grew, while output of gold jewellery, mobile instruments, copper bars and knitted readymade garments shrank.