India's Index of Industrial Production growth cooled to 3.2% in December, after rising to a six-month high of 5% in November, according to the data released by the Ministry of Statistics & Programme Implementation on Wednesday.
The industrial production growth has decreased primarily due to the slowing of manufacturing output. After rising by 5.8% in November, the sectoral output increased by 3% in December.
"Despite the moderation, we expect a rebound in the coming months which will be adequately supported by capex push, beginning with the easing cycle by RBI and lower inflation," Jahnavi Prabhakar, economist at Bank of Baroda said.
Prabhakar added that the ongoing global tariff war remains a key risk to these projection amidst the concern around higher imported inflation and thereby, requires careful attention
IIP Sectoral Estimates (YoY)
Mining output rose by 2.6% in December compared to 1.9% in November.
Manufacturing output grew by 3% vs 5.5% last month.
Electricity generation rose by 6.2% vs 4.4% in the previous month.
Industrial output, as classified by the end use of goods, showed:
Primary goods production rose by 3.8% in December compared to 2.7% in November.
Capital goods output increased by 10.3% vs 8.8% last month.
Intermediate goods output grew by 5.9% vs 4.8% in the previous month.
Infrastructure and construction goods output rose by 6.3% vs 8.1.
Consumer durables output rose by 8.3%.
Consumer non-durables output contracted by 7.6%.
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