Latest news with #IndexofIndustrialProduction
The Hindu
11 hours ago
- Business
- The Hindu
Steep decline: On the Index of Industrial Production
India's factory output performance measured monthly by the Index of Industrial Production (IIP) and released by the Ministry of Statistics and Program Implementation (MoSPI) slowed to an eight-month low of 2.7% in April, at the start of fiscal 2026. It also marked a steep decline, almost halving from last April's 5.2% growth. This correlates with the monthly gauge of the eight core sectors by the Ministry of Commerce and Industry, which posted a 0.5% growth in April, also an eight-month low. More significantly, it is a steep decline from last April's 6.9%. The eight core sectors make up about 40% of the weight of items included in the IIP. This comes on the back of a 4% growth in industrial output for the last fiscal, which was the lowest in the past four years. Of particular concern is the contraction in mining by 0.2%, the first since August 2024. While the absolute value of mining exports has risen in the past decade from $25 billion in FY15 to $42 billion in FY25, its share in exports has fallen from 8.1% to 5.1%. This still constitutes a not-so-insignificant share in India's overall goods exports at a time of great trade volatility. However, both manufacturing and power production also slowed to 3.4% (4.2%) and 1.1% (10.2%), respectively, in April. While trade and tariff-related uncertainties are most likely to have impacted goods output, the continuing contraction in consumer non-durables' output for the third consecutive month suggests persistently low rural consumption, as essentials such as food make up a significant portion of consumer non-durables. This is a clear indication that despite retail inflation hitting an almost 6-year low at 3.16% in April, it has not translated into higher spending power for rural communities, where consumer non-durables have the most demand. Food prices contracted for the sixth straight month to 2.14%, which led to below MSP rates for most staples at mandis. The government must focus on raising rural incomes by implementing MSPs for farm produce more systematically. This would aid in increasing rural consumption. However, a surge in capital goods output to 20.3% in April, albeit from a low base, indicates confidence in the domestic economy as investors continue with their plans to diversify exports, attempting to rely less on the U.S. With trade-related sectors expected to continue to stay volatile in the near-term, the Centre must push the private sector to increase capital expenditure at home. This will increase incomes, and aid in raising consumption demand. Export-oriented sectors must also aim to ring-fence themselves from tariff, price and supply chain shocks by ensuring a robust domestic presence, while also diversifying outside the traditional export regions of the U.S. and the EU.
Economic Times
2 days ago
- Business
- Economic Times
IIP growth slows to 8-month low in April over decline in mining output
Agencies Only 11 of 23 mfg sectors had higher on-year growth than overall output growth in April NEW DELHI: India's industrial production growth fell to an eight-month low of 2.7% in April, dragged down by a contraction in mining output, high base effect and moderation in electricity production, official data released on Wednesday showed. The Index of Industrial Production (IIP) had expanded 3.9% in the previous month and 5.2% in April 2024. Manufacturing grew 3.4% in the first month of 2025-26 on the back of a solid expansion in the automobile sector. While mining output contracted 0.2%, electricity generation increased a muted 1.1% year-on-year in April. Within the manufacturing sector, 16 out of the 23 industry groups recorded positive growth. "The slowdown, albeit mild, was broad-based driven by a weaker performance across all the three production sectors," said Aditi Nayar, chief economist, ICRA. Only 11 of the total 23 manufacturing sub-sectors had a higher on-year growth than overall output growth in April, illustrating the skewness in industrial growth, according to Paras Jasrai, economist at India Ratings and Research. The silver lining in the data was the consumer durables and capital goods sector. The 6.4% expansion in consumer durables was driven by a 10.5% growth in electronic goods ahead of the upcoming marriage season. The auto sector reported a solid 15.4% growth. However, consumer non-durables output declined 1.7%, highlighting the urban-rural divide."Going ahead, the domestic consumption landscape remains a key monitorable due to the prevailing unevenness in demand recovery... the continued improvement in the inflation scenario led by easing of food inflation is a key tailwind for the demand recovery," said Rajani Sinha, chief economist, CareEdge Ratings.A 20.3% increase in capital goods was supported by both electrical and non-electrical machinery. "It needs to be seen if this is maintained in the coming months as one is looking at investment to pick up," said Madan Sabnavis, chief economist, Bank of Baroda. Infrastructure and construction goods output increased 4% in April while primary goods saw a marginal contraction of 0.4 %."On the whole the performance is encouraging and it will be important that there is further pickup in coming months," Sabnavis expect the unseasonal rains to impact construction goods output and keep factory output growth under 2% on-year in May.
Time of India
2 days ago
- Business
- Time of India
IIP growth slows to 8-month low in April over decline in mining output
NEW DELHI: India's industrial production growth fell to an eight-month low of 2.7% in April, dragged down by a contraction in mining output, high base effect and moderation in electricity production, official data released on Wednesday showed. The Index of Industrial Production ( IIP ) had expanded 3.9% in the previous month and 5.2% in April 2024. Manufacturing grew 3.4% in the first month of 2025-26 on the back of a solid expansion in the automobile sector. While mining output contracted 0.2%, electricity generation increased a muted 1.1% year-on-year in April. Within the manufacturing sector , 16 out of the 23 industry groups recorded positive growth. "The slowdown, albeit mild, was broad-based driven by a weaker performance across all the three production sectors," said Aditi Nayar, chief economist, ICRA . Only 11 of the total 23 manufacturing sub-sectors had a higher on-year growth than overall output growth in April, illustrating the skewness in industrial growth, according to Paras Jasrai, economist at India Ratings and Research . Live Events The silver lining in the data was the consumer durables and capital goods sector. The 6.4% expansion in consumer durables was driven by a 10.5% growth in electronic goods ahead of the upcoming marriage season. The auto sector reported a solid 15.4% growth. However, consumer non-durables output declined 1.7%, highlighting the urban-rural divide. "Going ahead, the domestic consumption landscape remains a key monitorable due to the prevailing unevenness in demand recovery... the continued improvement in the inflation scenario led by easing of food inflation is a key tailwind for the demand recovery," said Rajani Sinha, chief economist, CareEdge Ratings. A 20.3% increase in capital goods was supported by both electrical and non-electrical machinery. "It needs to be seen if this is maintained in the coming months as one is looking at investment to pick up," said Madan Sabnavis, chief economist, Bank of Baroda . Infrastructure and construction goods output increased 4% in April while primary goods saw a marginal contraction of 0.4 %. "On the whole the performance is encouraging and it will be important that there is further pickup in coming months," Sabnavis said. Economists expect the unseasonal rains to impact construction goods output and keep factory output growth under 2% on-year in May.
The Print
3 days ago
- Business
- The Print
Industrial output growth slips to 2.7 pc in April, dragged by mining, power sectors
The National Statistics Office (NSO) also revised upwards industrial production growth for March to 3.9 per cent from the earlier estimate of 3 per cent released last month. The IIP growth was 2.7 in February also. The factory output, measured in terms of the Index of Industrial Production (IIP), rose by 5.2 per cent in April 2024, the data showed. New Delhi, May 28 (PTI) India's industrial production growth slowed to 2.7 per cent in April 2025 due to poor performance of manufacturing, mining and power sectors, according to official data released on Wednesday. The NSO data showed that the manufacturing sector's output growth slightly decelerated to 3.4 per cent in April 2025 from 4.2 per cent in the year-ago month. Mining production contracted by 0.2 per cent as against a growth of 6.8 per cent a year ago. Power output growth also slowed to 1 per cent in April 2025 against 10.2 per cent in the year-ago period. As per use-based classification, the capital goods segment growth accelerated to 20.3 per cent in April 2025 from 2.8 per cent in the year-ago period. Consumer durables (or white goods production) grew 6.4 per cent during the reporting month against a growth of 10.5 per cent in April 2024. In April 2025, consumer non-durables output contracted 1.7 per cent compared to a decline of 2.5 per cent a year ago. Infrastructure/construction goods reported a growth of 4 per cent in April 2025, down from an 8.5 per cent expansion in the year-ago period. The data also showed that the output of primary goods contracted by 0.4 per cent in April 2025 against 7 per cent growth a year earlier. The expansion in the intermediate goods segment was 4.1 per cent in the month under review, up from 3.8 per cent a year ago. PTI KKS KKS MR This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
The Print
3 days ago
- Business
- The Print
Industrial output growth slips to 2.7 pc in April, dragged mining, power sectors
The National Statistics Office (NSO) also revised upwards industrial production growth for March to 3.9 per cent from the earlier estimate of 3 per cent released last month. The factory output, measured in terms of the Index of Industrial Production (IIP), rose by 5.2 per cent in April 2024, the data showed. New Delhi, May 28 (PTI) India's industrial production growth slowed to 2.7 per cent in April 2025 due to poor performance of manufacturing, mining and power sectors, according to official data released on Wednesday. The NSO data showed that the manufacturing sector's output growth slightly decelerated to 3.4 per cent in April 2025 from 4.2 per cent in the year-ago month. Mining production contracted by 0.2 per cent as against a growth of 6.8 per cent growth a year ago. Power output growth also slowed to 1 per cent in April 2025 against 10.2 per cent in the year-ago period. PTI KKS MR This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
