Industrial growth inches up 1.3% in January from 10-month low in December

The manufacturing sector, which makes up over three-fourths of the IIP, expanded by 1.1 percent in January, with the figure for December being revised to a growth of 0.2 percent from a contraction of 0.1 percent. This was the fastest the sector has grown in three months.

However, growth in power generation decelerated to 0.9 percent as against an expansion of 5.5 percent in January 2021. In the April-January period of the current fiscal, the IIP growth stood at 13.7 percent as against a contraction of 12 per cent in the corresponding period of 2020-21.

As per the use-based classification, two of the six goods -- capital (a proxy for investment demand) and consumer durables -- saw their output shrink in January. They contracted 1.4 per cent and 3.3 per cent, respectively, in January. Production of consumer non-durable goods, which had contracted in December, increased by 2.1 percent. Output of primary and intermediary goods rose slightly, while that of infrastructure goods increased by 5.4 percent, the most in three months.

The indices stand at 136.5 for primary goods, 91.9 for capital goods, 151.1 for intermediate goods and 158.2 for infrastructure/ construction goods for the month of January 2022. The indices for consumer durables and consumer non-durables stand at 119.8 and 152.9, respectively, for the month January 2022.

For April 2021-January 2022, industrial output has clocked a growth of 13.7 percent as against a contraction of 12.0 percent in the corresponding period of FY21.