IIP: India's Industrial Output Grew 5.6% In February

India’s factory output rose at the fastest pace in three months in February.

The Index of Industrial Production expanded 5.6% in February, as compared with a revised growth of 5.5% in January, according to data published by the Ministry of Statistics and Programme Implementation on Wednesday.

The industrial output declined 5.6% month-on-month against a rise of 1.1% in January.

Thirty-three economists polled by Bloomberg had forecast February IIP growth at 5%.

The year-on-year growth in the Index of Industrial Production rose slightly in February, well above the forecast of 4.5%, said Aditi Nayar, chief economist at ICRA.

While the disaggregated trend was quite uneven, the improved performance of consumer goods is encouraging, she said.

Dampened by a high base and heavy rainfall, the year-on-year performance of most of the available high frequency indicators have weakened in March 2023, relative to February 2023, she said.

According to her, the year-on-year growth in IIP is expected to dip to about 3-4% in March 2023.

• Mining output grew 4.6% in February, as compared with 8.8% in January.

• Manufacturing output expanded 5.3%, as against 4% a month ago.

• Electricity generation rose 8.2%, as compared with 12.7% in the previous month.

Industrial output, as classified by the end use of goods, showed:

• Primary goods output rose 6.8%, as compared with 9.6% in January.

• Capital goods output grew 10.5%, as against 10.7% in the previous month.

• Intermediate goods output dipped 0.3% versus a rise of 0.5% a month ago.

• Infrastructure and construction goods output rose 7.9%, as against 9.8% in January.

• Consumer durables output fell 4%, as compared with a dip of 8.2% a month ago.

• Consumer non-durables output rose 12.1%, as against 6.4% in January.