India’s factory output grows 3.8 pc YoY in December 2023: Govt data

New Delhi, Feb 12 (Agency) India’s factory output measured in terms of Index of Industrial Production (IIP) grew 3.8% year-on-year (YoY) in the month of December 2023, data from Ministry of Statistics & Programme Implementation (MoSPI) showed on Monday. While mining sector output recorded 5.1% growth in December 2023, the manufacturing sector grew at a modest pace of 3.9% during this period. Power sector output recorded 1.2% year-on-year growth in December 2023, as per the MoSPI data. Commenting on the IIP number, ICRA Chief Economist Aditi Nayar said, “In contrast to the slowdown in the core sector growth, the YoY growth in the IIP rose to 3.8% in December 2023 from 2.4% in November 2023, led by an improvement in the performance of manufacturing.”

“In terms of the use-based categories, only primary goods reported a sequential moderation in December 2023, with all five other categories reporting an improvement. With the available high frequency data for January 2024 appearing promising, we anticipate a modest rise in the IIP growth to 4-6% in that month,” she said. As per the official data, IIP recorded 6.1% growth in April-December period of current financial year 2023-24.