Industrial production growth rate slowed down to 1.1 percent

New Delhi (Best Hindu News): The country’s industrial production growth rate based on the Index of Industrial Production (IIP) slowed down to 1.1 percent year-on-year in March 2023.

In February this year, industrial production had increased by 5.6 percent as compared to February last year.

Data released by the Ministry of Statistics and Program Implementation on Friday showed that mining sector output grew by 6.8 per cent year-on-year in March, while manufacturing sector output grew by just 0.5 per cent year-on-year during the period.

Electricity generation declined by 1.6 percent in March.

Vivek Rathi, Director (Research), Knight Frank India, said, “The deceleration in industrial growth is mainly due to deceleration in growth in manufacturing output. Growth in capital and infrastructure/construction sector output, however, remained at a high level, indicating a recovery in the economy. ,

Rathi said signs of recovery in domestic consumption are still uneven, as production of consumer durables is yet to pick up.

In the data released earlier, the combined output growth rate of eight core industries in March 2023 was 3.6 percent year-on-year, falling to a five-month low. The contribution of these eight industries in IIP is 40.27 per cent.

Neesh Bhatt, founder and chief executive officer (CEO) of Millwood Cane International, said that the decline in industrial production is a cause for concern.

Is. IIP stood at 1.1 per cent, well below market expectations. He said that the decline in power demand, especially in the summer months, is a big negative sign.