Mumbai (TIP)- India’s factory output based on the Index of Industrial Production (IIP) moderated to a three-month low of 5 per cent in April due to slower manufacturing growth, data released by the National Statistical Office (NSO) on Wednesday, June 12, showed.
Manufacturing, which accounts for 77.6 per cent of the weight of the IIP, grew 3.9 per cent in April, down from 5.5 per cent in the year-ago period and 5.8 per cent a month ago.
Factory output growth was 5.4 per cent in March and 5.6 per cent in February 2024. The previous low of IIP was recorded at 4.2 per cent in January, 2024. For the financial year 2023-24, industrial growth was 5.9 per cent against 5.2 per cent in the preceding financial year.
As per the latest data, the mining output growth accelerated to 6.7 per cent in April against a 5.1 per cent expansion in the year-ago month. Electricity output increased by 10.2 per cent in April against a contraction of 1.1 per cent in the corresponding period in the previous year. As per use-base classification, the capital goods segment growth fell to 3.1 per cent in April from 4.4 per cent in the year-ago period. In April this year, consumer durables output expanded 9.8 per cent on a low base effect. It had contracted by 2.3 per cent in April 2023.
Consumer non-durable goods output contracted by 2.4 per cent during April 2024 as against a growth of 11.4 per cent in April 2023. Infrastructure/construction goods reported a growth of 8 per cent in April 2024 against a 13.4 per cent expansion in the year-ago period.
Output of primary goods logged a 7 per cent growth in April this year, up from 1.9 per cent a year earlier. The expansion in the intermediate goods segment was 3.2 per cent in April, higher than 1.7 per cent recorded in the same period a year ago.
“This divergence in the two components of consumer demand is reflective of the ongoing consumer pattern, which is skewed in favour of households belonging to the upper 50% of the income bracket… this is worrisome, as such a consumption pattern would not allow the overall consumption demand to become broad-based,” India Ratings’ Paras Jasrai and Sunil K Sinha said in a note.