India’s Industrial Production Hits Four-Month High in February

NEW DELHI, – According to the latest government data, India’s industrial output in February grew at its fastest pace in four months, registering a 5.7% increase compared to the same month last year. This surpassed economist expectations, which had predicted a 6% growth.

The updated figures also show a revision in January’s industrial output growth, now set at 4.1% up from the initial 3.8%. Key sectors showed varied performance with manufacturing output increasing by 5% year-on-year, although this was a slowdown from the previous year’s 5.9% increase.

Electricity generation saw a 7.5% rise, a slight decrease from last year’s 8.2%, while mining output improved significantly, showing an 8% growth compared to a 4.8% increase last year. Infrastructure goods production and capital goods output experienced changes, growing by 8.5% and 1.2% respectively.

Notably, the production of consumer durables like automobiles and appliances surged by 12.3%, rebounding from a 4.1% contraction last year. In contrast, consumer non-durables declined by 3.8%, a sharp reversal from the 12.5% growth seen previously.

Over the first 11 months of the fiscal year starting April 2023, industrial output has increased by 5.9%, slightly above the previous year’s 5.6% rise. Aditi Nayar, an economist at ICRA, noted that while output meets expectations, indicators hint at a potential softening in March, projecting the annual increase might taper to between 4.5% and 5.5%.

(Reuters)