IIP Data: Industrial Production In India To Grow 4.3% In December 2022, Production Up 2.6%

IIP data for December 2022: India’s industrial production increased by 4.3 percent in December 2023, according to the latest IIP data released on Friday. Manufacturing output grew 2.6 percent this month.

According to the latest data released by the National Statistical Office (NSO) on Friday, mining grew 9.8 percent in December 2022 and electricity production increased 10.4 percent.

In the period April-December 2022, total industrial production based on the Index of Industrial Production (IIP) grew by 5.4 percent. During that period, mining grew 5.4 percent and electricity grew 9.9 percent.

Aditi Nayar, chief economist and head (research & outreach) at ICRA, said: “IIP growth was 4.3 percent in December 2022, in line with our forecast, up from the anemia average increase in the previous two months . , whose individual performances have been besieged by base effects related to a shift in the holiday calendar.”

She added that the breakdown by usage-based data remains decidedly uneven, ranging from contractions in intermediate goods and consumer durables to strong growth of 7-9 percent for the remaining four categories.

“YoY growth of most available high-frequency indicators improved in January 2023 versus December 2022, in part due to a favorable foundation following the onset of the third wave of Covid-19 in January 2022, on which we based the expect overall IIP growth to rise to 5-7 percent in the month,” Nayar said.

She also said that year-over-year growth in the IIP is likely to improve going forward in the current quarter (+2.4 percent year-over-year in Q3 FY2023), driven in part by the typical increase in volumes at the end of the year to targets as well as a low base of the third wave of Covid-19. However, we remain vigilant about the impact of a slowdown in foreign demand and the resulting fall in goods exports on manufacturing performance.

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