IIP: India's Industrial Output Expands 4.3% In December

The Index of Industrial Production expanded 4.3% in December, compared to 7.3% in November.

<div class="paragraphs"><p>(Source: Unsplash)</p></div>
(Source: Unsplash)

India’s factory output rose but at a slower pace than in the previous month.

The Index of Industrial Production expanded 4.3% in December, compared to 7.3% in November, according to data published by the Ministry of Statistics and Programme Implementation on Friday.

The industrial output rose by 5.3% on a month-on-month basis in December.

Thirty-three economists polled by Bloomberg had forecast December IIP growth at 5%.

The IIP growth printed in line with the forecast, the individual performances of which were besieged by base effect related to a shift in the festive calendar, according to Aditi Nayar, chief economist at ICRA. 

The year-on-year growth in the IIP is likely to improve in the ongoing quarter, partly boosted by the typical year-end push in volume to achieve targets as well as a low base of the third wave of Covid-19, she said.

However, they remain "watchful of the impact of a slowdown in external demand and the consequent decline in merchandise exports on the performance of the manufacturing sector", Nayar said.

Sectoral Estimates

  • Mining output rose 9.8% in December, compared to a rise of 9.7% in November.

  • Manufacturing output expanded 2.6%, after a rise of 6.3% over the previous month.

  • Electricity generation rose 10.4%, compared to a rise of 12.7% in November.

Industrial output, as classified by the end use of goods, showed:

  • Primary goods output rose 8.3%, compared to an increase of 4.8% in November.

  • Capital goods output grew 7.6%, as against 21.6% last month.

  • Intermediate goods output fell 0.3%, compared to a rise of 3.3% in the previous month.

  • Infrastructure and construction goods output grew 8.2%, compared to a rise of 13.2% last month.

  • Consumer durables output fell by 10.4%, from a rise of 5.3%.

  • Consumer non-durables output rose by 7.2%, compared to a 9.1% gain in November.