Industrial output in March grew at a higher pace of 3% in March compared to 2.7% in February driven mainly by higher electricity production. However, year-on-year, the industrial production slowed down during the month compared to 5.5% growth in the same month previous year. For the full year, industrial production grew at 4% in FY25 compared to 5.9% in the previous year, according to the Industrial Production Index numbers released by the Ministry of Statistics and Programme Implementation (Mospi) on Monday.
The IIP numbers for March were released on 28th April, two weeks ahead of time. The ministry in a statement said that from April 2025 onwards, Index of Industrial Production (IIP) will be released on 28th of every month -- within 28 days from the reference month. For a particular month, IIP will be released as quick estimates followed by a final estimate.
During March, mining output growth slowed down to 0.4% compared to 1.6% in February and 1.3% a year ago. Manufacturing output registered a minor improvement at 3% during March compared to 2.8% in February and 5.9% in March 2024.
Sector-wise, consumer durables output grew at 6.6% in March compared with 3.7% in February, while construction goods output grew at 8.8% in March compared to 6.8% in February. Consumer non-durables production registered a decline of 4.7% during the month.
Commenting on the IIP numbers, DK Joshi, chief economist of Crisil Ltd says that the impact of tariff hikes, uncertainty on such changes and slowing global growth is likely to weigh on manufacturing activity in the coming months. He says exports and investment demand are likely to be affected the most but domestic policy is likely to support growth as the income tax cuts come in force this fiscal and Reserve Bank of India continues with rate cuts.