India Industrial Activity: IIP Growth Slows To 2.7% In April
The slowdown comes amid the turbulence caused by the now-revoked reciprocal tariffs announced by the United States last month, which raised a cloud over global exports.
India's industrial output growth slowed to 2.7% in April, as against the revised growth of 3.9% in the preceding month of March, according to the data released by the Ministry of Statistics and Programme Implementation on Tuesday.
The slowdown comes amid the turbulence caused by the now-revoked reciprocal tariffs announced by the United States last month, which raised a cloud over global exports.
The IIP growth rate of 2.7% has beaten the Bloomberg estimate, which projected India's factory activity to rise by 0.9%. Although, it is the slowest expansion in eight months.
Manufacturing activity, which comprises the largest component of the index, expanded on an annual basis by 3.4%, compared to 4% in the preceding month. Within the manufacturing sector, 16 out of 23 industry groups recorded positive growth.
Mining contracted by 0.2%, versus a 1.2% increase in March.
Electricity production slowed to 1.1%, as against 7.5% in the preceding month.
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IIP Internals
Primary goods contracted 0.4% year-on-year in April versus 3.9% in the preceding month.
Capital goods grew 20.3% versus 3.6% in March.
Intermediate goods grew 4.1% versus 3.8% in the preceding month.
Infrastructure goods grew by 4% versus 9.9% last month.
Consumer durables grew by 6.4% versus 6.9% in the previous month.
Consumer non-durables output contracted by 1.7% versus a contraction of 4% in the previous month.
While the IIP growth expectedly eased in April, the extent of the dip was much lower than expectations given the slump in the core sector growth, suggesting that the non-core portion of the IIP witnessed a relatively healthier growth in the month, said Aditi Nayar, chief economist at ICRA.
The slowdown, albeit mild, was broad-based and driven by a weaker performance across all three production sectors. However, the performance of the use-based sectors was mixed, with three of the six witnessing an improvement including capital goods, intermediate goods, and consumer non-durables, she noted.
(Correction: The figures in the IIP internals for March have been revised.)
