India’s Index of Industrial Production (IIP) slowed to 4.9 per cent in March from 5.7 per cent in February this year, according to data released by the Ministry of Statistics & Programme Implementation. The manufacturing sector recorded a growth rate of 5.2 per cent, with contributions from various segments including basic metals, pharmaceuticals, and other transport equipment. The top three positive contributors to the growth of IIP for March 2024 were the manufacture of basic metals, pharmaceuticals, medicinal chemical and botanical products, and other transport equipment.
The cumulative 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 at 7.5 per cent, manufacturing at 5.5 per cent, and electricity at 7.1 per cent for the same period. The indices for Primary Goods stand at 162.2, Capital Goods at 130.5, Intermediate Goods at 167.5, and Infrastructure/Construction Goods at 194.2 for March 2024. Overall, IIP grew at 4.9 per cent in March 2024, with manufacturing growing at 5.2 per cent, electricity at 8.6 per cent, and mining at 1.2 per cent.
Sanjeev Agrawal, President of PHD Chamber of Commerce and Industry, remarked that the high growth of consumer durables at 9.5 per cent and capital goods at 6.1 per cent indicates an expansion of investment trajectory in the country. The indices for Consumer durables and Consumer non-durables stood at 129.9 and 154.7 respectively for March 2024. The corresponding growth rates of IIP as per Use-based classification in March 2024 over March 2023 were 2.5 per cent in Primary Goods, 6.1 per cent in Capital Goods, 5.1 per cent in Intermediate Goods, 6.9 per cent in Infrastructure/Construction Goods, 9.5 per cent in Consumer durables, and 4.9 per cent in Consumer non-durables.
In conclusion, the data reveals a mixed picture of industrial production in India, with some sectors showing robust growth while others lag behind. The growth rates of different segments indicate the strength of the manufacturing sector in contributing to the overall industrial production. The positive contributions from basic metals, pharmaceuticals, and other transport equipment highlight the diverse nature of India’s industrial output. The government and industry stakeholders will need to monitor these trends closely to ensure sustainable growth and development in the industrial sector.
