India's Index of Industrial Production (IIP) for March 2024 has shown a growth rate of 4.9 per cent, indicating a positive trend in the country's industrial output. The Quick Estimates of IIP released by the government provide insights into the performance of various sectors, with manufacturing, mining, and electricity sectors contributing to the overall growth.
The Quick Estimates reveal that the Index of Industrial Production for March 2024 stands at 159.2, based on 2011-12 as the reference year. Within this, the indices for the mining, manufacturing, and electricity sectors are 156.1, 155.1, and 204.2, respectively.
The Index of Industrial Production (IIP) for different sectors, based on the 2011-12 reference year, reflects notable fluctuations over the months and years. In the mining sector, there's a steady rise from 116.6 in April 2022 to 156.1 in March 2024, indicating consistent growth. Manufacturing, on the other hand, shows a varied trend with a peak at 145.5 in January 2024 but a slight dip to 147.5 in March 2024. Electricity generation demonstrates a more pronounced upward trajectory, climbing steadily from 134.5 in April 2022 to 159.2 in March 2024. Overall, the general index portrays an upward movement, reaching 198.3 in March 2024 from 185.2 in April 2022. These figures highlight the dynamic nature of industrial production, influenced by various factors including economic policies, market demand, and external conditions.
Sectoral Growth Rates
The growth rates for the mining, manufacturing, and electricity sectors for March 2024 over the corresponding period of the previous year are 1.2 per cent, 5.2 per cent, and 8.6 per cent, respectively. Notably, within the manufacturing sector, significant contributors to the growth of IIP include the manufacture of basic metals, pharmaceuticals, medicinal chemical and botanical products, and other transport equipment.
Cumulative Growth
The cumulative growth rate for April-March 2023-24 over the corresponding period of the previous year stands at 5.8 per cent. Cumulatively, the mining, manufacturing, and electricity sectors have grown by 7.5 per cent, 5.5 per cent, and 7.1 per cent, respectively, during this period.
Use-based Classification
According to the use-based classification, the indices for primary goods, capital goods, intermediate goods, infrastructure/construction goods, consumer durables, and consumer non-durables for March 2024 are provided. Growth rates in various categories range from 2.5 per cent in primary goods to 9.5 per cent in consumer durables.
Revision And Compilation
The Quick Estimates for March 2024, along with revisions for February 2024 and final revisions for December 2023, have been compiled based on updated data received from source agencies. The response rates for compiling these estimates range from 93 per cent to 96 per cent.
The Quick Estimates of the Index of Industrial Production for March 2024 indicate a positive growth trajectory for India's industrial sector. As the country continues to focus on industrial development, these insights provide valuable information for policymakers, businesses, and analysts to understand trends and plan future strategies.
Commenting on the announcement, Sanjeev Agrawal, President, PHD Chamber of Commerce and Industry said, “PHDCCI appreciates the high growth in the capital goods at 6.1 per cent in the IIP data released by MoSPI, Government of India, for the month of March 2024. Overall IIP grew at 4.9 per cent in the month of March 2024, of which manufacturing grew at 5.2 per cent, electricity at 8.6 per cent and mining at 1.2 per cent. High growth of consumer durables at 9.5 per cent and capital goods at 6.1 per cent indicates expansion of investment trajectory in the country.”
