• UGI USER
  • May 11, 2024
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MARCH WITNESSES INDIA’S INDUSTRIAL OUTPUT GROWTH SLOW TO 4.9%

Why in the news?

Industrial output growth in India slows to 4.9% in March, attributed to a decline in mining and surge in electricity.

source:wordpress

About Industrial Output Growth Slows to 4.9% in March:

  • India’s industrial output growth decelerated to 4.9% in March, down from 5.6% in February, as reported by the National Statistical Office.
  • Mining output hit a 19-month low with a growth rate of 1.2%, while electricity generation surged by 8.6% compared to a contraction of 1.6% in March 2023.
  • Manufacturing, constituting 77.6% of the Index of Industrial Production, saw a five-month high growth of 5.2% in March.
  • Consumer durables grew at 3.6%, and non-durables rose by 4% in 2023-24, indicating a mixed consumption scenario.
About The Index of Industrial Production (IIP):

  • The Index of Industrial Production (IIP) measures changes in industrial production volume over a period.
  • Compiled monthly by the National Statistical Office (NSO), it includes sectors like Mining, Manufacturing, and Electricity.
  • Use-based sectors such as Basic Goods, Capital Goods, and Intermediate Goods are also included.
  • Base Year for IIP is 2011-2012.
  • It’s crucial for policy-making by government agencies like the Ministry of Finance and the Reserve Bank of India.
  • IIP is vital for calculating quarterly and advance GDP estimates.
  • Eight Core Sectors contribute 40.27% to the IIP, including Refinery Products, Electricity, Steel, Coal, Crude Oil, Natural Gas, Cement, and Fertilisers.