IIP Data: India’s Industrial Production Jumps 8-Month High Of 7.1 Per Cent In April, Says Govt Data

The rise in IIP index of 7.1 per cent is the highest in eight months, mainly led by good growth in power and mining sectors, which grew by 11.8 per cent and 7.8 per cent, respectively

Manufacturing sector recorded growth of 6.3 per cent in the first month of the current financial year, the data released by the National Statistical Office (NSO) said

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India's industrial growth, measured by the Index of Industrial Production (IIP) index, jumped to 7.1 per cent in April 2022 from 2.2 per cent in March, according to official data released the Ministry of Statistics and Programme Implementation.

The rise in IIP index of 7.1 per cent is the highest in eight months, mainly led by good growth in power and mining sectors, which grew by 11.8 per cent and 7.8 per cent, respectively.

Manufacturing sector recorded growth of 6.3 per cent in the first month of the current financial year, the data released by the National Statistical Office (NSO) said.

It further said growth rates over corresponding period of the previous year are to be interpreted considering the unusual circumstances on account of the Covid-19 pandemic since March 2020.

According to the data, power, and mining sectors grew by 11.8 per cent and 7.8 per cent, respectively.

As per the use-based classification, the capital goods segment recorded a growth of 14.7 per cent, while the consumer durables sector expanded by 8.5 per cent.

NSO further said the primary goods, intermediate goods, infrastructure/ construction goods, and consumer non-durables sectors expanded by 10.1 per cent, 7.6 per cent, 3.8 per cent, and 0.3 per cent, respectively.

Though IIP rose 7.1 per cent, India’s GDP forecast is getting slashed.

Fitch Ratings on Friday cut India’s economic growth forecast to to 7.8 per cent for the current fiscal (April 2022 to March 2023) from the 8.5 per cent prediction it made in March due to the inflationary impact of the global commodity price shock.

Fitch, however, has revised the outlook on India’s sovereign rating to Stable from Negative as downside risks to medium-term growth have diminished on rapid economic recovery.