The Centre is all set to release Index of industrial production (IIP) data for January 2023 on March 10. Also, February CPI and WPI data will be released on March 13 and 14 respectively.
IIP is used to measure the manufacturing activity in various sectors of an economy and measures the amount of industrial production for the period under review in comparison with a reference period.
This macroeconomic data is important for policymakers as it showcases the current state of and other important sectors. However, it is important to consider other economic indicators, such as GDP growth, inflation, and employment data to gain a comprehensive view.
IIP preview
The January IIP growth is expected at 5.25 percent, compared to 4.3 percent month-on-month. The January IIP growth estimates range from 4.8 percent to 6.3 percent, according to a CNBC-TV18 poll.
Mining and electricity have shown high growth and is likely to be the primary driver for improvement in January IIP. Non-durables have on the other hand grown well by 7.2 percent which came over a low base of 0.3 percent year-on-year (YoY). On the other hand, manufacturing has lagged with just 2.6 percent and consumer durables have witnessed negative growth.
The core infrastructure industry's output grew by 7.8 percent year-on-year in January as against 7 percent in December last year. Manufacturing PMI rose modestly to 55.4 in January from 57.8 month-on-month.
According to official data, India's industrial production (IIP) rose by 4.3 percent in December 2022 as compared to the 7.1 percent growth seen in the month of November last year.
For the month of December 2022, the mining sector grew by 9.8 percent compared to 9.7 percent in the previous month, while the manufacturing sector witnessed 2.6 percent compared to 6.1 percent in the previous month. The electricity sector grew by 10.4 percent compared to 12.7 percent in the previous month.
The growth of primary goods, capital goods, and infra goods was 8.3 percent, 7.6 percent, and 8.2 percent respectively.
Here's how various sectors performed in December and November 2022:
| Sector | December 2022 | November 2022 |
| Mining | 9.80% | 9.70% |
| Manufacturing | 2.60% | 6.1% |
| Electricity | 10.40% | 12.70% |
| Primary Goods | 8.30% | 4.70% |
| Capital Goods | 7.60% | 20.7% |
| Infra Goods | 8.20% | 12.80% |
| Consumer Durable Goods | -10.40% | 5.10% |
| Consumer Non-durables | 7.2% | 8.90% |
For the nine-month period between April-December 2022, IIP growth stood at 5.4 percent.
The Quick Estimates of IIP are released on the 12th of every month or the previous working day if 12th is a holiday.
(Edited by : Pradeep John)
