• UGI USER
  • Apr 13, 2024
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FEB SAW 5.7% INDUSTRIAL OUTPUT GROWTH BUT 3-MONTH LOW IN PRODUCTION.

Why in the news?

Industrial output surged 5.7% in February, led by growth in mining and electricity, with uneven consumption patterns.

source:scribd

About Recovery in Output:

  • India’s industrial output growth reached a four-month high of 5.7% in February, up from January’s 4.1%, driven by an 8% increase in mining and a 7.5% surge in electricity generation.
  • Consumption remained uneven, with non-durables contracting while durables showed double-digit growth.
  • The Index of Industrial Production (IIP) fell to a three-month low of 147.2, with output decreasing by 4.1% compared to January.
  • Sequential contractions were observed in manufacturing, mining, and electricity, as well as across the six use-based classifications of factory output.
What is the Index of Industrial Production (IIP)?

  • Indicator measuring volume changes in industrial production.
  • Compiled monthly by NSO, Ministry of Statistics.

Components of IIP:

  • Broad sectors: Mining, Manufacturing, Electricity.
  • Use-based sectors: Basic Goods, Capital Goods, Intermediate Goods.
  • Base Year: 2011-2012.

Significance of IIP:

  • Utilised by government agencies for policy-making.
  • Essential for calculating quarterly and advance GDP estimates.

Source:

https://m.economictimes.com/news/economy/indicators/industrial-production-rises-to-a-four-month-high-of-5-7-in-feb-compared-to-4-2-in-previous-month/articleshow/109250310.cms