Industrial production growth remains subdued at 1.9 pc in March

PTI

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 per cent in March 2021, as per government data released on Thursday.

The IIP growth was 1.5 per cent in January as well as February this year amid the third wave of Covid-19.

It was just 1 per cent in November and December last year. Factory output grew by 4.2 per cent in October 2021.

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

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

Power sector showed a growth of 6.1 per cent compared to 22.5 per cent growth a year ago.

For the full fiscal 2021-22, IIP grew 11.3 per cent as against an 8.4 per cent 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 per cent against a growth of 59.9 per cent a year ago.

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

After recording a contraction in several months during the pandemic period, IIP has remained in the positive territory since March 2021.

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