India's industrial production slows to 4.9% in March from 5.6% in the previous month

India's industrial production slowed to 4.9% in March this year, mainly due to a slump in the mining sector, official data released on Friday said. Last month his IIP growth rate for February 2024 was 5.6%.

Factory output, as measured by the Index of Industrial Production (IIP), increased by 1.9% as of March 2023.

According to the latest data released by the National Statistics Office (NSO), manufacturing output increased by 5.2% in March 2024, compared with a 1.5% increase in the same month last year.

Mining production increased by 1.2% in March this year, and electricity generation increased by 8.6%.

For the full year 2023-24, IIP increased by 5.8% compared to 5.2% expansion in the previous financial year.

Power generation in March 2024 increased by 8.6% in the same month, compared to a 1.6% decrease in the same month last year.

According to the usage-based classification, the growth rate of the capital goods sector declined to 6.1% in March 2024 from 10% in the same period last year. Durable consumer goods production increased by 9.5% in March this year. By March 2023, it had shrunk by 8%.

Production of consumer non-durable goods increased by 4.9% in the month compared to a contraction of 1.9% in March 2023. According to the data, infrastructure/construction goods recorded a growth of 6.9% in March 2024, compared to 7.2% expansion in March 2024. period one year ago.

The data also showed that production of primary goods in March this year recorded a growth of 2.5%, slowing from 3.3% in the same period last year. Growth in the intermediate goods sector for the month was 5.1%, higher than 1.8% in the same period last year.

“IIP growth is expected to decline to 4.9% in March 2024 from 5.6% in February 2024,” said Aditi Nayar, chief economist and head (research and outreach), ICRA. ICRA experience: 4.5%). Leap year effects have faded. Growth in IIP was driven by strong electricity expansion, with demand increasing due to rising temperatures, but moderated by modest increases in mining production. We are encouraged by the fact that manufacturing growth has risen to the highest level in five months, albeit from a very low base.

Although growth in consumer durables remained strong at 9.5% in March 2024, outpacing other categories, this performance is on a low base (-8% in March 2023), she added. Ta.