India's Index of Industrial Production (IIP) grew by 5.2% in February, as compared to 4.8% in the preceding month, on the back of accelerated manufacturing output, according to data released by the Ministry of Statistics & Programme Implementation on Monday.
The manufacturing output grew by 6% during the month, as against a 5.3% in January. The climb helped in offsetting the decline in power generation, which fell to 2.3% from 5.1% in January.
The mining output, which is also crucial to determine India's pace of industrial production, grew by 3.1% in February as against 4.3% in the previous month.
On use-based classification, the output of primary goods grew by 1.8%, marking a decline from 3.1% in January. Capital goods output continued to surge, with a 12.5% climb in February. In the preceding month, it had grown by 4.1%.
The production of intermediate goods increased by 7.7% in February, following a 6.3% growth in January, whereas infrastructure goods saw growth moderating to 11.2% from 14.6%.
An improvement in the consumption segment also factored in the rise of industrial output in February. While the consumer durables output rose marginally to 7.3% from 7.2%, the de-growth in non-durables output improved to -0.6% from -2.3%.
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The data released by the government corresponds to the month of February, when the war in Middle East had not erupted. The industrial output has likely come under strain in March, say analysts, as the disruption in commercial liquified petroleum gas (LPG) supplies has hit factories in parts of the country.
The Association of Indian Entrepreneurs, in a statement issued earlier this month, said a critical shortage of LPG is pushing micro, small and medium enterprises towards an operational crisis. "LPG is not just a fuel, it is a lifeline of daily production," K E Raghunathan, the association's chairman, was quoted as saying by news agency PTI on March 15.
"Unlike large corporations, MSMEs operate on extremely thin margins. A sudden spike in energy costs or irregular LPG supply can force many units to cut production, reduce workforce, or temporarily shut down operations. If this situation continues, it could trigger a chain reaction impacting employment, supply chains and local economies,” he said.
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