Industrial output growth slips to 4.3% in Dec 2022

New Delhi, Feb 11 (KNN) Factory output growth dipped to 4.3 per cent in December from 7.3 per cent in November, as per data released on Friday. 

The data released by the National Statistical Office (NSO) showed that the Industrial output witnessed improvement on an annual basis as the growth measured in terms of the Index of Industrial Production (IIP) stood at 1 per cent in December 2021.

As per reports, the industrial growth is likely to reach up to 7 per cent in January.

In December 2022, the manufacturing sector’s output grew 2.6 per cent as compared to 0.6 per cent recorded in same period last year.

The mining output rose 9.8 per cent (2.6 per cent), power generation jumped 10.4 per cent (2.8 per cent).

Aditi Nayar, Chief Economist, ICRA, said the January growth number is likely to be in the range of 5-7 per cent. This, as the growth of most available high frequency indicators improved last month relative to December, partly reflecting a favourable base owing to the onset of the third wave of Covid-19 witnessed in January last year.

“Going forward, the y-o-y growth in IIP is likely to improve in the ongoing quarter (from 2.4 per cent in Q3 FY23), partly boosted by the typical year-end push in volumes to achieve targets as well as a low base, “ Nayar said.

Vivek Rathi, Director (Research), Knight Frank India, expressed concern on the 10.4 per cent contraction in consumer durable output as for the long term sustained economic growth, consumption demand is needed to strengthen.  (KNN Bureau)