New Delhi, May 12 (Agency) India’s factory output measured by Index of Industrial Production (IIP) decelerated to 1.1% in March 2023, data released by Ministry of Statistics & Programme Implementation showed on Friday. The industrial production had grown 5.6% year-on-year in February this year. The official data showed mining sector output grew 6.8% year-on-year in March while manufacturing sector production inched up 0.5% during this period. Electricity output declined 1.6% in March this year despite it being a summer month. “Softening of Industrial production growth in March 2023 is led by moderating growth in manufacturing output.
However, the growth in capital and infrastructure/construction output continues to remain on the upside, indicating an investment upcycle in the economy,” said Vivek Rathi, Director Research, Knight Frank India. Rathi noted that signals of recovery in domestic consumption are still uneven as the output of consumer durable goods is yet to pick up. Data released in late April had shown that the combined output of India’s eight core industries dropped to a five-month low of 3.6% year-on-year in March 2023. The index of eight core industries accounts for 40.27% of the weight of items included in the IIP. “Most of the available high frequency indicators recorded a deterioration in their YoY performance in April 2023, relative to March 2023, partly on account of the unseasonal rainfall seen during the month,” said ICRA Chief Economist Aditi Nayar.