India's Industrial Output Surges by 4.2% in April

13 Jun 2023 , 09:59 AM

The Ministry of Statistics and Programme Implementation has reported a significant growth in India’s industrial output, with a 4.2% increase recorded in April. This latest figure, measured by the Index of Industrial Production (IIP), surpasses the previous month’s growth rate of 1.1%, which had been the lowest in five months. The March figure has now been revised to 1.7%.

As per the data, in comparison, April 2022 witnessed a growth rate of 6.7% in industrial production, indicating a slight dip in growth this year. Despite unseasonal rains potentially affecting mining activities, the mining sector still managed a growth rate of 5.1%, slightly lower than the 6.8% recorded in March.

The manufacturing sector, which contributes to over three-fourths of the IIP, experienced a positive upswing with a year-on-year growth rate of 4.9% in April, compared to a 1.2% increase in March. On the other hand, the electricity sector faced a decline for the second consecutive month, with production falling by 1.1% in April following a 1.6% drop in March.

In terms of sequential comparison, only electricity generation witnessed an increase of 2.3% in April, while mining, manufacturing, and overall industrial output saw contractions of 20.6%, 6.1%, and 7.4%, respectively, compared to the previous month. It is worth noting that April usually witnesses weaker production activity compared to March.

In terms of use-based classification of goods, three out of six categories showed weaker numbers in April. However, this represents an improvement from March, when five categories experienced a decline in year-on-year output growth.

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