India’s industrial production grew by 5.2 per cent in January this fiscal year, the National Statistical Office (NSO) data released on Friday showed. Factory output measured in terms of the Index of Industrial Production (IIP) grew 2 per cent in January 2022. The IIP in December has been revised up to 4.7 per cent from 4.3 per cent, data from the ministry showed.
The data released by the NSO revealed that the manufacturing sector’s output increased 3.7 per cent in January 2023. Mining output rose 8.8 per cent and power generation surged 12.7 per cent during the month under review.
For January, 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. These Quick Estimates will undergo revision in subsequent releases as per the revision policy of IIP, the official release stated.
For the first 10 months of 2022-23, IIP growth was 5.4 per cent, down from 13.7 per cent in the corresponding period of 2021-22.
The improvement in industrial growth in January was expected, with data released on February 28 showing India’s eight core sector grew by 7.8 per cent in January, up from 7 per cent in December.
The performance of the core sectors is a leading indicator of industrial growth as the eight core industries make up around 40 per cent of the IIP.
While manufacturing output rose by 3.7 per cent, up from 3.1 per cent in December, electricity production was higher by 12.7 per cent as against an increase of 10.4 per cent in the last month of 2022.
Meanwhile, India’s GDP growth rate declined for the second consecutve quarter in October-December (Q3FY23), coming in at 4.4 per cent, according to the data released by the Ministry of Statistics and Programme Implementation. The latest quarterly growth number at 4.4 per cent is lower than the 6.3 per cent growth that was seen in the second quarter of 2022-23.
However, the estimates for FY22 have been revised upwards to 9 per cent against the earlier estimate of 8.7 per cent. The growth in nominal GDP at current price during FY23 is estimated at 15.9 per cent as compared to 18.4 per cent in FY22.