India’s Factory Production Rises 5.2 Per Cent In January

India’s industrial output grew 5.2 per cent in January, according to the Ministry of Statistics & Programme Implementation. It was a 4.7 per cent rise in December 2022.

A double-digit surge in electricity generation for the third successive month was one of the factors that bolstered the increase.

Consumer durables output contracted for the second month in a row, declining 7.5 per cent in January. December saw 11 per cent drop in consumer durables output.

In January, primary goods’ output grew 9.6 per cent, capital goods’ output grew 11 per cent, intermediate goods output was up 0.1 per cent, construction goods’ grew 8.1 per cent while durables’ output grew 6.2 per cent, the government data said on Friday.

For the month of January 2023, the Quick Estimates of Index of Industrial Production (IIP) with base 2011-12 stands at 146.5. The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of January 2023 stand at 135.9, 144.3 and 186.6 respectively.

Mohit Ralhan, Chief Executive Officer, TIW Capital, said, “The 5.2 per cent growth in IIP for the month of January has come slightly ahead of the estimates of 5 per cent. The average since April-2022 has been 5.4 per cent and therefore the January number has come quite close to the average. It is a significant improvement from the 4.3 per cent number in December.”

He said, “The IIP growth in India has demonstrated and an average of 6.05 per cent between 1994 and 2022 and from this perspective there is still quite a headroom for it to grow further from here on, especially in manufacturing which increased only by 3.7 per cent in the month of January.”

“The on-ground business activities appear to be stabilising with higher growth in capital goods and infrastructure goods of 11 per cent and 8.1 per cent, respectively. A revival of the capital investment cycle and high spending on infrastructure are likely to keep IIP growth above 5 per cent, keeping Indian economic growth on track,” he added. (ANI)

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