Image used for illustrative purposes only. (File Photo)
NEW DELHI: The country’s industrial output grew 5.2% in January as against 4.7% in December, on the back of good performance of the power, mining and manufacturing sectors, according to official data released on Friday. In the first 10 months of financial year 2022-23 (FY23), India’s Industrial Product (IIP) rose 5.4%, down from 13.7% in the same period of FY22.
Eight core sector data, which was released on February 28, showed a growth of 7.8% in January, up from 7% in December. The core sector comprises 40% of the IIP, hence the improvement in eight core sectors was indicative of better IIP numbers.
The manufacturing output surged 3.7% in January from 3.1% in the previous month, while electricity production grew 12.7% in January from 10.4% in the previous month. However, mining sector output grew at a slower pace of 8.8% as compared with 10% in the month of December.
In addition, output of primary and capital goods grew 9.6% and 11% in January as against 8.4% and 7.8%, respectively, in December, as per the data. The output of consumer durables continued to contract in January at 7.5% as against 11% in December, while intermediate goods witnessed a slight increase by 0.1% in their production.
“A portion of the continuing, albeit, narrower contraction in consumer durables, stems from weak exports. Despite the subdued base related to the third wave of Covid 19, some of the available high frequency indicators recorded a weaker y-o-y performance in February, relative to January, such as Coal India Ltd’s output, rail freight traffic, ports cargo traffic, electricity generation and auto output,” said Aditi Nayyar, Chief Economist with ICRA Ltd. “In contrast, vehicle registrations and finished steel consumption saw an improved year-on-year performance in February.”
Manufacturing output surges 3.7% in January
Manufacturing output surged 3.7% in January from 3.1% in the previous month, while electricity production grew 12.7% in January from 10.4% in the previous month. However, mining sector output grew at a slower pace of 8.8% as compared with 10% in the month of December.
