According to statistics that were issued by the Ministry of Statistics and Programme Implementation on Friday, India’s industrial production expanded by 1.1% in March, marking the slowest rate in the last five months. This information was disclosed. According to the Index of Industrial Production (IIP), the annual rate of growth for the manufacturing sector in February increased from 5.6 percent to 5.8 percent. The IIP growth statistic for March came in at 1.1 percent, which is much lower than the consensus projection of 3.2 percent.
“For the month of March 2023, the Quick Estimates of Index of Industrial Production (IIP) with base 2011-12 stands at 150.5. The Indices of Industrial Production (IIP) for the Mining, Manufacturing and Electricity sectors for the month of March 2023 stand at 154.2, 146.0 and 188.0 respectively,” the Centre’s announcement said.
The manufacturing and electrical markets both hit a plateau in March, which contributed to the precipitous drop in overall industrial growth.
When compared to the year-over-year growth rate of 5.6% seen in February, the output of the manufacturing sector, which is responsible for more than three-fourths of the IIP, only increased by a meagre 0.5% in March. This follows a growth rate of 5.6% seen in February. To make things even worse, the generation of power dropped by 1.6 percent in March, compared to an increase of 8.2 percent in February.
According to the use-based categorization, the indices for the month of March 2023 stand at 158.2 for primary goods, 120.9 for capital goods, 158.2 for intermediate goods, and 178.7 for infrastructure and construction goods. In addition, the indices for consumer durable goods and consumer non-durable goods are now sitting at 118.1 and 145.6, respectively, for the month of March 2023,” the report said further.
The mining, manufacturing, and electrical sectors’ respective indices of industrial output for the month of March 2023 stand at 154.2, 146.0, and 188.0, respectively. In accordance with the IIP’s policy on revisions, these quick estimates will be subjected to adjustment in the following releases.
Meanwhile, statistics from India’s Ministry of Statistics and Programme Implementation showed on Friday that the country’s retail inflation fell to 4.7% in April from 5.66% in March. This represents a new low for the period of 18 months and is likely the result of a favourable base.
Additionally, the inflation rate for food decreased to 3.84 percent in April. In March, it was 4.79 percent already. Inflation as measured by the Consumer Price Index (CPI) has, for the second month in a row, maintained a range that the Reserve Bank of India considers acceptable—below 6%.
