IIP growth falls to 5 month low of 1.1% in March on poor manufacturing performance
For 2022-23 as a whole, industrial production clocked a growth of 5.1 percent as against 11.4 percent in 2021-22.
According to publicly available official data, India’s industrial production growth hit a five-month low of 1.1% in March 2023. This reduction was principally caused by the weak performance of the manufacturing and power sectors, with the manufacturing sector expanding by only 0.5% as opposed to 1.4% in the previous year. In March 2023, power generation fell by 1.6% compared to the previous month’s gain of 6.1%.
Capital Goods Segment Records a Growth of 8.1%:
According to use-based classification, the capital goods segment increased by 8.1% in March compared to an increase of 2.4% in the same month last year. However, production of consumer durables shrank by 8.4% during the month compared to a drop of 3.1% a year earlier. In addition, production of consumer non-durable items decreased by 3.1% as opposed to 4.4% less last year. Infrastructure and construction products saw growth of 5.4% compared to 6.7% growth during the same time last year.
Growth in IIP for Fiscal 2022-23 is 5.1%:
IIP growth for the fiscal year 2022–2023 is estimated to be 5.1%, down from 11.4% the year before. The Indian economy, which had been exhibiting indications of recovery from the COVID-19 pandemic, is concerned about this fall in industrial production growth. Given that both industries are important contributors to economic growth, the weak performance of the manufacturing and electricity sectors is particularly concerning. To guarantee continued growth in the future, the government will need to take action to solve the problems these sectors are currently facing.