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Saturday, February 24 2024
Industry

Positive momentum effect supports rise of industrial output

Positive momentum effect supports rise of industrial output
Photo Credit : IANS

New Delhi/Chennai: India’s industrial output or index of industrial production (IIP) went up by 5.2 per cent in January, according to data released on Friday by the Ministry of Statistics. It was 4.7 per cent in December 2022.

For the April-January period of 2022-23, IIP growth was 5.4 per cent, down from 13.7 per cent recorded during the corresponding period of last year.

The manufacturing output rose by 3.7 per cent in January 2023, up from 3.1 per cent in December 2022; electricity production was also higher by 12.7 per cent in January 2023 compared to an increase of 10.4 per cent in December 2022.

Mining output growth though was 8.8 per cent in January 2023, down from 10 per cent growth recorded in December 2022.

Reacting to the industrial output growth in January, Rajani Sinha, Chief Economist, CARE Ratings, told IANS: “Positive momentum effect continued to support the activity for the third consecutive month. Export-intensive items like textiles, leather and apparels continued to witness contraction in output. Expansion in the consumer non-durable goods output for the third consecutive month is a positive development.”

Sinha said that resilient urban demand, easing commodity prices and improvement in the rural demand are tailwinds for industrial output.

“Going ahead, factors like high inflation, rising interest rates, weak external demand and waning domestic pent-up demand pose downside risks for the momentum in activity,” she added.

Read more:

Japan’s industrial output dropped 1.0 per cent on month in Dec’21

Covid Casualty: India’s core industrial output down 8.5 per cent in Aug

Deep in the red: India’s Sep industrial output shrinks 4.3 per cent

 

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