IIP growth remains subdued at 1.9% in March

NEW DELHI: Industrial production growth remained subdued at 1.9 percent in March compared to a year ago, mainly due to poor performance by the manufacturing sector which showed staggered impact of the third wave of the pandemic.

Factory output measured in terms of Index of Industrial Production (IIP) had recorded a growth of 24.2 percent in March 2021, as per government data released on Thursday. The IIP growth was 1.5 percent in January as well as February this year amid the third wave of Covid-19. It was just 1 percent in November and December last year. Factory output grew by 4.2 percent in October 2021.

As per the data released by the ministry of statistics and programme implementation, growth in the mining sector was 4 percent in March 2022 against a growth of 6.1 percent in the same month last year. The manufacturing sector expanded by meager 0.9 percent, compared to a growth of 28.4 percent in the year-ago period. Power sector showed a growth of 6.1 percent compared to 22.5 percent growth a year ago.

For the full fiscal 2021-22, IIP grew 11.3 percent as against an 8.4 percent contraction in 2020-21. Capital goods output, which is a barometer of investment, showed a growth of 0.7 percent in March 2022 against a jump of 50.4 percent in the year-ago month. The consumer durables segment was in the negative zone, showing a decline of 3.2 percent against a growth of 59.9 percent a year ago.

However, the primary goods segment, which accounts for nearly 34 percent of the index, expanded by 5.7 percent in March compated to 7.9 percent growth earlier. Intermediate goods and infrastructure/construction goods output was in the positive territory, while consumer non-durable segment contracted. The ministry said the growth rates over the corresponding period of the previous year are to be interpreted considering the unusual circumstances on account of the pandemic since March 2020.

After recording a contraction in several months during the pandemic period, IIP has remained in the positive territory since March 2021.