India's industrial production grows 3.8% in December 2023, beats estimate
IIP for December 2023 | This was lower than 5.1% in the year-ago period. According to the CNBC-TV18 poll of economists, the forecast IIP was estimated at 2%.
India's industrial output as measured by the Index of Industrial Production (IIP) recorded a growth of 3.8% in December 2023, which is lower than 5.1% in the year-ago period, the Ministry of Statistics & Programme Implementation (MoSPI) said on Monday (February 12).
According to the CNBC-TV18 poll of economists, the forecast IIP was estimated at 2%. Industrial output, or factory output, is the closest approximation for measuring the economic activity of the country's business landscape.
The data released by the National Statistical Office (NSO) showed that the manufacturing sector's output grew 3.9% in December 2023, up from 3.6% in the year-ago month.
In December last year, mining production rose by 5.1%, and power output increased by 1.2%. IIP grew 6.1% during the April-December 2023 period compared to a 5.5% expansion in the year-ago period.
Aditi Nayar, Chief Economist, Head Research and Outreach, ICRA Ltd, said, "In contrast to the slowdown in the core sector growth, the YoY growth in the IIP rose to 3.8% in December 2023 from 2.4% in November 2023, led by an improvement in the performance of manufacturing.
In terms of the use-based categories, only primary goods reported a sequential moderation in December 2023, with all five other categories reporting an improvement. With the available high-frequency data for January 2024 appearing promising, we anticipate a modest rise in the IIP growth to 4-6% in that month."
First Published: Feb 12, 2024 5:50 PM IST
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