India's industrial production expanded at a strong pace in January, continuing the momentum it has gained in the past few months, data released by the government showed today. However, growth in industrial output slowed slightly from the previous month, stoking some worries about future prospects, especially once the fiscal stimulus is withdrawn and interest rates starts to rise.
India's industrial output, as measured by the Index of Industrial Production (IIP), stood at 16.7% in January as against 1% in the same month a year earlier, the Commerce & Industry Ministry said today. The figure was mostly in line with consensus estimates. It remained near the highest reading since April 1995, when the series, which uses 1993-94 as base year, started.
Industrial production growth for December was revised up, to 17.6% from a preliminary estimate of 16.8%.
Manufacturing, with an almost 80% weightage in the IIP, stood at 17.9% in January compared to a 1% in the same month in 2009.
The Electricity sub-segment grew by 5.6% in the month under review versus 1.8% in January 2009. Mining output grew by 14.6% in the first month of 2010 as against 0.7% growth achieved in January 2009.
Consumer Durables expanded by 31.6% in January 2010 as against 2% in the same period in 2009. Consumer Goods was recorded at 4.2% over 3.6% in January 2009.
Capital Goods grew by 56.2% in January 2010 compared to 15.9% for the same month of 2009. The growth rate in Basic Goods category rose by 10.7% versus a contraction of 0.7% in the year-ago period.
Between April and January, industrial growth expanded 9.6%, the Commerce Ministry said today.