IIP Growth Rate Slows To 4.9 Percent In March 2024 FRom 5.7 Percent In February 2024

IIP Data Update: The pace of industrial production in the country has slowed down. According to the IIP (Index of Industrial Production) data released for March 2024, the growth rate of industrial production in March 2024 has been 4.9 percent, which had increased at the rate of 5.7 percent in February 2024. Last year in March 2023, the IIP growth rate was 1.9 percent.

The Ministry of Statistics has released the growth rate data of industrial production. In March 2024, the three major sectors, mining sector, have shown a growth rate of 1.2 percent, whereas in February, this sector had shown a growth rate of 8 percent. The growth rate of the manufacturing sector has been 5.2 percent, which was 5 percent in the first month, while the growth rate of the electricity sector has been 8.6 percent, which was 7.5 percent in February. Due to decline in production in the mining sector, the IIP growth rate has declined in the month of March. The IIP growth rate for the entire financial year 2023-24 has been 5.8 percent, which was 5.2 percent in the previous financial year. The ministry said that mining has shown growth of 7.5 percent in the entire year, manufacturing sector has shown growth of 5.5 percent and electricity has shown growth of 7.1 percent.

On the IIP data, CareEdge Ratings Chief Economist Rajni Sinha said, in the last month of 2023-24, the IIP growth rate has come down from the estimated 5.6 percent to 4.9 percent. Growth in the manufacturing and electricity sectors has accelerated while the pace of mining output has slowed down. On the consumption front, the output of consumer durables has increased by 9.5 percent while the output of non-consumer durables has increased by 4.9 percent after a decline of two months. He said, there is a need to keep an eye on this in the coming days.

On the data of 5.9 percent IIP growth rate for the entire financial year, Rajni Sinha said, the picture of consumption in 2023-24 has been mixed. Demand was seen in urban areas but demand was weak in rural areas. However, due to better monsoon and reduction in inflation, demand in rural areas is expected to increase. Neesh Bhatt, Founder and CEO of Millwood Kane International, said, the situation is looking better due to good monsoon forecast, reduction in inflation, and increase in demand in urban areas. However, there is a need to keep a close eye on global tensions, rural consumption, food inflation and crude oil prices.

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