Industrial output rose to an eight-month high of 7.1 per cent in April, driven by better performance by the power and mining sectors, according to government data released on Friday.
The index of industrial production (IIP) data released by the National Statistical Office (NSO) shows that the manufacturing sector registered a growth of 6.3% in the first month of the current financial year.
The previous high of IIP growth was 13% in August 2021.
However, the NSO said that in view of the unusual circumstances due to the COVID-19 pandemic from March 2020, the growth rate in the corresponding period of the previous year has to be interpreted.
The power and mining sectors grew by 11.8% and 7.8%, respectively.
As per the use-based classification, the capital goods segment registered a growth of 14.7%, while the production of consumer durables registered a growth of 8.5%.
The NSO further said that the output of primary goods, intermediate goods, infrastructure/construction goods and consumer non-durables sectors expanded by 10.1%, 7.6%, 3.8% and 0.3%, respectively.
ICRA Chief Economist Aditi Nair said: “The low base of the second wave of COVID-19 propelled IIP growth to an 8-month high of 7.1% in April 2022, although it surpassed our expectation (9.2%) Due to weaker than expected performance of mining.
The weak performance of capital goods production relative to pre-COVID levels reaffirmed the view that the capacity utilization of the private sector in the fourth quarter of 2021-22 in the light of uncertainties arising from rapid geopolitical developments will not expand rapidly. He added.
Nish Bhatt, Founder and CEO, Millwood Cane International, said industrial production grew on a month-on-month and year-on-year basis.
“Although industrial growth has seen an upswing, it has been very uncertain, requiring sustained growth over a long period of time for policy makers to take note of it,” he said.
The other key data to watch will be the Consumer Price Index (CPI) which will be released next week, Mr. Bhatt said.