India's industrial production grew at the fastest pace in six months at 2 per cent in January, mainly on account of uptick in mining activity and power generation, official data showed on Thursday.
Factory output, as measured in terms of the Index of Industrial Production (IIP), had recorded a growth of 1.6 per cent in January 2019. It grew 4.9 per cent in July 2019.
The production contracted by 1.4 per cent in August, 4.6 in September and 6.6 per cent in October last year. It grew 1.8 per cent in November and 0.1 per cent in December 2019.
Last month, provisional data had showed that IIP contracted by 0.3 per cent in December 2019.
According to data from the National Statistical Office (NSO), the manufacturing sector output grew at a rate of 1.5 per cent in January as compared with a rise of 1.3 per cent in the corresponding month a year ago.
Electricity generation rose 3.1 per cent, against 0.9 per cent growth in January 2019.
The mining sector output posted a growth of 4.4 per cent in January 2020, compared with a rise of 3.8 per cent a year ago.
The IIP growth during the April 2019-January 2020 period decelerated to 0.5 per cent, from 4.4 per cent expansion in the corresponding period of 2018-19
The data for January further showed that production of capital goods, a barometer of investment, shrunk by 4.3 per cent as compared with a contraction of 3.6 per cent in the corresponding month of the previous year.
As per use-based classification, the growth rates in January 2020 over January 2019 are 1.8 per cent in primary goods, 15.8 per cent in intermediate goods and (-) 2.2 per cent in infrastructure and construction goods.
The consumer durables and consumer non-durables have recorded growth of (-) 4.0 per cent and (-) 0.3 per cent, respectively.
Eleven out of the 23 industry groups in the manufacturing sector have shown positive growth during the month of January 2020 as compared to the corresponding month of the previous year.
The industry group 'manufacture of tobacco products' has shown the highest growth of 22.8 per cent, followed by 14.1 per cent in 'manufacture of basic metals' and 9 per cent in 'manufacture of furniture'.
On the other hand, the industry group 'printing and reproduction of recorded media' has shown the highest negative growth of 16.3 per cent, followed by (-) 11.6 per cent in 'manufacture of computer, electronic and optical products' and (-) 10.6 per cent in 'manufacture of motor vehicles, trailers and semi-trailers'.
Disclaimer: No Business Standard Journalist was involved in creation of this content
