IIP Rate: The pace of growth of industrial production slowed down in January 2024, IIP remained at 3.8 percent

IIP Growth Rate: Due to poor performance of manufacturing, mining and electricity sectors, the pace of industrial production growth rate has slowed down in January 2024. The IIP rate has come down to 3.8 percent in January 2024, whereas the IIP growth rate in January 2023 was 5.8 percent. A month ago, the growth rate of IIP in December 2023 was 4.2 percent.  

The Ministry of Statistics and Program Implementation has released the industrial production rate, according to which the output of the manufacturing sector has shown a growth rate of 3.2 percent in January 2024, which was 4.5 percent in the same month a year ago. The growth rate of electricity production was 5.6 percent in January, which was 12.7 percent in January 2023. The growth rate of mining activity has been 5.9 percent, which had increased at the rate of 9 percent in the same period last year. 

Industrial output has grown at the rate of 5.9 percent in the first 10 months of the financial year 2023-24, which had grown at the rate of 5.5 percent during the same period in 2022-23. The production of consumer durables increased at the rate of 10.9 percent in January, which had increased at the rate of 8.2 percent in the same period last year. 

Vivek Rathi, National Director Research, Knight Frank India, said, the pace of manufacturing output has slowed down a bit. He said that for strong and stable economic growth, it is very important for the manufacturing sector to remain strong. He said that despite the decline in manufacturing growth, the increase in capital goods growth is indicating positive growth in domestic investment, which is giving momentum to the economy.  

CareAge Ratings Chief Economist Rajni Sinha said that consumer durables output was 10.9 percent in January which was 5.3 percent in December. He said that the negative growth of consumer non-durables is pointing towards weakness in consumption. He said that when the retail inflation rate is declining, it will be interesting to see how consumption improves in the coming quarter. 

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