India’s January industrial output rises 3.8% y/y

By Thomson Reuters Mar 12, 2024 | 7:42 AM

NEW DELHI (Reuters) -Indian industrial output in January grew at a weaker-than-expected rate of 3.8% year-on-year on the back of slowdown in manufacturing and mining activity, government data showed on Tuesday.

Economists polled by Reuters had estimated growth of 4.1% in January. Industrial output for December has been revised upwards to 4.2% from 3.8%.

Manufacturing output in January rose 3.2% year on year, slower than 4.5% in the same month the previous year.

Electricity generation in January was up 5.6%, against 12.7% growth in the corresponding month a year earlier. Mining activity increased 5.9%, compared with a 9% rise in the same month a year earlier.

Madan Sabnavis, an economist at Bank of Baroda, said high growth of 11% in consumer durables is encouraging even as non-durables slipped marginally by -0.3%.

Industrial output in the first 10 months of the fiscal year, which started in April, was up 5.9%, against 5.5% in the same period a year earlier.

Aditi Nayar, an economist at ICRA, said she anticipates industrial growth in February to remain at 3%-4%.

(Reporting by Sarita Chaganti Singh; Editing by Alex Richardson and Nick Macfie)