Rise in manufacturing activity pushed India’s industrial output higher on a sequential as well as on a year-on-year basis in February 2022, official data showed on Tuesday.
The Index of Industrial Production (IIP) rose by 1.7 per cent last month from a rise of 1.46 per cent (revised) in January 2022.Similarly, the industrial production rate was higher on a year-on-year basis. In February 2021, the IIP fell by (-) 3.2 per cent.
“For the month of February 2022, the ‘Quick Estimates of Index of Industrial Production’ (IIP) with base 2011-12 stands at 132.1,” said the Ministry of Statistics and Programme Implementation.
“The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of February 2022 stand at 123.2, 130.8 and 160.8 respectively.”
On a YoY basis, the mining excavation output grew by 4.5 per cent from (-) 4.4 per cent in February 2021. The manufacturing production inched-up by 0.8 per cent from a fall of (-) 3.4 per cent and electricity generation rose at a sharper rate of 4.5 per cent from 0.1 per cent in February 2021.
Among the major use-based segments, the February 2022 data, on a YoY basis, showed that manufacturing of primary goods grew by 4.6 per cent from a fall of (-) 4.6 per cent, whereas capital goods production inched-up by 1.1 per cent from (-) 4.2 per cent, and intermediate goods’ increased by 4.3 per cent from (-) 5.3 per cent.
Similarly, the production of infrastructure or construction goods rose by 9.4 per cent from (-) 3.5 per cent. However, consumer durables’ production degrew by (-) 8.2 per cent from a rise of 6.6 per cent and the sub-segment of consumer non-durables fell by (-)5.5 per cent from (-) 3.8 per cent.
“When it comes to analysing the ongoing economic recovery, growth in Index of Industrial Production (IIP) continues to paint a dismal picture,” said Sunil Kumar Sinha, Principal Economist, India Ratings and Research.
“As the geo-political situation has worsened after the Russia-Ukraine conflict and has the potential to turn into a major headwind for the economy, Ind-Ra believes ongoing industrial recovery will need more policy support. Against this backdrop, Ind-Ra expects the IIP growth to remain in low single digits in the near term.”
