Industrial output growth subdued at 1.9% in March

New Delhi, May 12

Industrial production growth remained subdued at 1.9 per cent in March compared to a year ago, mainly due to poor performance by the manufacturing sector which showed staggered impact of the third wave of the pandemic.

Factory output measured in terms of Index of Industrial Production (IIP) had recorded a growth of 24.2% in March 2021, as per government data released on Thursday.

The IIP growth was 1.5% in January and February this year amid the third wave of Covid. It was just 1% in November and December last year. Factory output grew by 4.2% in October 2021.

As per the data released by the Ministry of Statistics and Programme Implementation, growth in the mining sector was 4% in March 2022 against a growth of 6.1% in the same month last year.

The manufacturing sector expanded by meagre 0.9%, compared to a growth of 28.4% in the year-ago period.

Power sector showed a growth of 6.1% compared to 22.5% growth a year ago. For the full fiscal 2021-22, IIP grew 11.3% as against an 8.4% contraction in 2020-21.

Capital goods output, which is a barometer of investment, showed a growth of 0.7 per cent in March 2022 against a jump of 50.4 per cent in the year-ago month.

The consumer durables segment was in the negative zone, showing a decline of 3.2% against a growth of 59.9% a year ago.

However, the primary goods segment, which accounts for nearly 34% of the index, expanded by 5.7% in March compared to 7.9% growth earlier.

Intermediate goods and infrastructure/construction goods output was in the positive territory, while consumer non-durable segment contracted.

The ministry said the growth rates over the corresponding period of the previous year are to be interpreted considering the unusual circumstances on account of the pandemic since March 2020. —PTI

Manufacturing expands by 0.9%

• Growth in the mining sector was 4% in March 2022 against 6.1% in the same month last year
• The manufacturing sector expanded by meagre 0.9% versus 28.4% in the year-ago period
• Power sector showed a growth of 6.1% as compared to 22.5% a year ago