New Delhi, May 10 India’s Index Industrial Production (IIP) clocked a 4.9 per cent growth in March this year over the same month of the previous year, as per the figures released by the Ministry of Statistics on Friday.
The manufacturing sector, which provides quality jobs to the young graduates passing out from the country’s universities and engineering institutes, posted a 5.2 per cent growth during the month.
Electricity production grew by 8.6 per cent while the mining sector lagged with a 1.2 per cent growth rate during the month.
Within the manufacturing sector, the growth rate of the top three positive contributors to the growth of IIP: “Manufacture of basic metals” (7.7 per cent), “Manufacture of pharmaceuticals, medicinal chemical and botanical products” (16.7 per cent), and “Manufacture of other transport equipment” (25.4 per cent).
The corresponding growth rates of IIP as per use-based classification for March show that the production of capital goods, which constitutes machines installed in factories, grew by 6.1 per cent. The output of capital goods reflects the real investment taking place in the economy and this augurs well for economic growth ahead.
Similarly, the production of consumer durables such as refrigerators, washing machines and TVs clocked a robust 9.5 per cent increase during March, reflecting the increase in consumer demand that stems from rising incomes and jobs.
The cumulative industrial growth rate for the period of April-March 2023-24 over the corresponding period of the previous year stands at 5.8 per cent.
The cumulative growth rates of the three sectors, mining, manufacturing and electricity for the period of April-March 2023-24 over the corresponding period of the previous year work out to 7.5 per cent, 5.5 per cent and 7.1 per cent respectively.
Commenting on the figures, ICRA Chief Economist Aditi Nayar said that the IIP growth was led by a robust expansion in electricity, with demand boosted by rising temperatures, and dampened by a feeble rise in mining output.
"Encouragingly, manufacturing growth rose to a five-month high,” he said.
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