New Delhi: The index of industrial production (IIP) or factory output grew 1.7 per cent in February as against 1.3 per cent in January.
The industrial production jumped in February mainly on account of rise in the mining sector and power generation.
IIP growth slumped to a 10-month low of 0.4 per cent in December last year.
The government data released on Tuesday mentioned that the manufacturing sector recorded growth of 0.8 per cent. The IIP had declined 3.2 per cent in February 2021.
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According to a report by the PTI, the cumulative growth in April-February 2021-22 worked out to be 12.5 per cent. In the year-ago period, there was a contraction of 11.1 per cent. During the 11-month period, the manufacturing sector recorded a growth of 12.9 per cent whereas it was a decline of 12.5 per cent in the year-ago period.
Meanwhile, the power generation growth too surged slowed in February, rising 4.5 per cent versus 0.9 per cent in January.
However, surging prices of commodities and global crude oil have contracted India’s manufacturing activity in March, according to a report by Reuters.
A recent survey showed that factory activity expanded at a slower pace in March and output grew at their weakest rate since September and optimism at a two-year low. The survey, compiled by S&P Global, pointed out that India’s economy is slowing.
In the report, the news agency has said that hikes in oil prices, primarily due to the ongoing Russia-Ukraine war, have already taken a toll on consumer spending, the biggest contributor to GDP growth.
The Manufacturing Purchasing Managers’ Index (PMI) declined to 54.0 in March from 54.9 in February. However, it has remained above the 50-level separating growth from contraction for nine straight months. Despite that decline, the sector had its best annual fiscal year performance since FY11-12.