Industrial production grows at 1.7 per cent in February according to NSO data
NEW DELHI: The index for industrial production (IIP), which measures industrial activities in the country, rose 1.7% in February 2022 against 1.5% in January, as per the National Statistical Office (NSO) data. In February 2021, the IIP had registered a decline of 3.2%.The mild rise in industrial production in February was led by mining and electricity, both of which registered a growth of 4.5% each during the month. Manufacturing, however, continues to be a laggard with a growth of 0.8%.
In terms of use-based categories, consumer durables and consumer non- durables saw contraction of 8.2% and 5.5%, respectively, largely due to high inflation and moderating rural demand. However, the contraction in these categories was offset by a sharp 9.4% jump in infrastructure and construction goods.
The cumulative growth in April-February stood at 12.5%. It is to be noted that there was a contraction of 11.1% in the same period of last year. Overall, in the manufacturing sector for eleven months a growth of 12.9% was recorded as against the contraction of 12.5% in the same period of previous year, as per the data.
When it comes to analyzing the ongoing economic recovery, growth in IIP continues to paint a dismal picture, says Dr. Sunil Kumar Sinha, Principal Economist, India Ratings and Research. He says successive monthly data of industrial output is making it abundantly clear that consumption demand will need policy makers attention.