Despite the challenges, India’s industrial production maintained a steady pace, decelerating to 4.9 percent in March this year. The mining sector, in particular, faced some headwinds, leading to this moderation, as per the official data unveiled on Friday. However, it’s worth noting that in February 2024, the Index of Industrial Production (IIP) had registered a growth rate of 5.6 percent, showcasing the resilience of the sector.
On a positive note, the manufacturing sector, a key driver of India’s industrial growth, witnessed a significant increase of 5.2 percent in March 2024. This is in stark contrast to the mere 1.5 percent growth in the corresponding period last year, according to the latest figures released by the National Statistical Office (NSO). This robust growth underscores the strength and potential of India’s manufacturing sector.
Mining production increased 1.2 percent in March this year, while power output surged by 8.6 percent. For the entire fiscal year 2023-24, the IIP expanded by 5.8 percent, improving from the 5.2 percent growth in the preceding fiscal year. Experts predict that this trend will continue in the next quarter, with [specific forecasts].
March 2024 marked a significant rebound in power generation, with an 8.6 percent surge, starkly contrasting to the 1.6 percent contraction observed in the same month of the previous year. This rebound is reflective of the sector’s resilience and its ability to adapt to changing circumstances.
Consumer durables output demonstrated a robust growth of 9.5 percent in March this year, bouncing back from an 8 percent contraction in March 2023. This significant recovery in the consumer durables sector is a positive sign for the overall industrial production performance.
Infrastructure/construction goods reported a growth of 6.9 percent in March 2024, slightly down from the 7.2 percent expansion in the corresponding period last year. Primary goods registered a growth rate of 2.5 percent in March this year, down from 3.3 percent a year earlier.
The intermediate goods segment witnessed a growth rate of 5.1 percent in the month under review, higher than the 1.8 percent recorded in the same period a year ago.