India’s industrial output has recorded a 1.1% growth in March, the slowest pace in the last five months, according to data released by the Ministry of Statistics and Programme Implementation. The February Index of Industrial Production (IIP) growth figure has been revised up to 5.8% from 5.6%. At 1.1%, the March IIP growth figure is significantly below the consensus estimate of 3.2%.
Sharp Fall in Industrial Growth Due to Manufacturing and Electricity Segments Stagnating
The manufacturing and electricity segments’ stagnation caused the sharp decline in industrial growth in March. The manufacturing sector, which accounts for more than three-fourth of the IIP, experienced a meagre 0.5% increase in output on a YoY basis in March, compared to a 5.6% increase in February. On the other hand, electricity production decreased by 1.6%, compared to an 8.2% rise in February.
Other Statistics and Figures
The indices of industrial production for the mining, manufacturing, and electricity sectors for the month of March 2023 stand at 154.2, 146.0, and 188.0, respectively. These Quick Estimates will undergo revision in subsequent releases as per the revision policy of IIP. As per Use-based classification, the indices stand at 158.2 for Primary Goods, 120.9 for Capital Goods, 158.2 for Intermediate Goods, and 178.7 for Infrastructure/ Construction Goods for the month of March 2023. Additionally, the indices for Consumer durables and Consumer non-durables stand at 118.1 and 145.6, respectively, for the month of March 2023.
Retail Inflation Dropped to 4.7% in April
India’s retail inflation dropped to 4.7% in April, an 18-month low from 5.66% in March, due to favourable base, data from the Ministry of Statistics and Programme Implementation said. The food inflation also eased to 3.84% in April, compared to 4.79%.
Possible Impact on the Indian Economy
The slowdown in industrial growth in March could impact the Indian economy’s overall growth and development. A decline in industrial production could lead to lower employment rates, reduced foreign investment, and decreased purchasing power. On the other hand, the drop in retail inflation could result in lower interest rates and a boost to consumer spending.
The Hindustan Herald Is Your Source For The Latest In Business, Entertainment, Lifestyle, Breaking News, And Other News. Please Follow Us On Facebook, Instagram, Twitter, And LinkedIn To Receive Instantaneous Updates. Also Don’t Forget To Subscribe Our Telegram Channel @hindustanherald
