NEW DELHI, Feb 11: India’s industrial recovery slowed sharply in December, with output growing just 0.4% year-on-year, and manufacturing activity shrinking 0.1% in the month, as per quick official estimates for the Index of Industrial Production (IIP)
Electricity output grew 2.8% in December, while mining activity grew 2.6%. Spliced by use-based classification, the IIP shows that capital goods output shrank 4.6% in the month while consumer durables and consumer non-durables saw production dip 2.7% and 0.6%, respectively.
Growth in other use-based segments was meagre and couldn’t lift the overall industrial output trend, with primary goods production rising 2.8%, infrastructure and construction goods growing 1.7% and intermediate goods seeing a mere 0.3% uptick.
Industrial output had grown a mere 1.34% in November 2021, which was the lowest in nine months. The National Statistical Office also revised upwards IIP numbers for September and October 2021, from 3.1% to 4.35% and 3.2% to 4.01%, respectively, using updated production data. Economists expressed surprise at the low IIP December print, but noted that an unfavourable base from December 2020 also played a part.
(Manas Dasgupta)