India’s Industrial Production Surges 4.9% In March 2024

India’s Industrial Production (IIP) growth rate for March registered at 4.9 per cent, exhibiting a slight decrease from the 5.7 per cent recorded in February, according to data released by the Ministry of Statistics and Programme Implementation (MoSPI) on Friday. The previous peak in the IIP was observed in October 2023 at 11.9 per cent, followed by a gradual decline in the subsequent months, with growth rates of 2.5 per cent in November, 4.2 per cent in December, and 4.1 per cent in January 2024.

The cumulative growth rate for the fiscal year concluding in March 2024 compared to FY23 was reported at 5.8 per cent. This figure indicates the overall growth trajectory for the entire fiscal period, encompassing various economic activities and sectors.

The manufacturing sector, which holds significant sway over India’s industrial output, experienced a growth rate of 5.2 per cent in March, marking a slight increase from 5 per cent in February.

The primary drivers behind this growth were identified as the sectors of ‘Manufacture of basic metals’, which experienced a growth rate of 7.7 per cent, ‘Manufacture of pharmaceuticals, medicinal chemical and botanical products’, which experienced a growth rate of 16.7 per cent, and ‘Manufacture of other transport equipment’, which recorded a substantial growth rate of 25.4 per cent.

The official release states, “Within the manufacturing sector, the growth rate of the top three positive contributors to the growth of IIP for the month of March 2024 are – “Manufacture of basic metals” (7.7 per cent), “Manufacture of pharmaceuticals, medicinal chemical and botanical products” (16.7 per cent), and “Manufacture of other transport equipment” (25.4 per cent),” 

Electricity generation, another essential component of industrial activity, saw a year-on-year growth of 8.6 per cent in March, compared to the 7.5 per cent recorded in February. Mining production also exhibited a modest increase of 1.2 per cent during the same period.

Upon analysing the use-based classification of industrial production, the growth rates for various categories in March 2024 over March 2023 were as follows: 2.5 per cent in primary goods, 6.1 per cent in capital goods, 5.1 per cent in intermediate goods, 6.9 per cent in infrastructure/construction goods, 9.5 per cent in consumer durables, and 4.9 per cent in consumer non-durables.

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