Business

Industrial output grows 4.5% in Feb.

India’s factory output accelerated 4.5% in February in comparison to the previous year. The growth in the Index of Industrial Production came on the back of higher output in mining, electricity and manufacturing sectors, according to the data released by the National Statistical Office on Thursday.

The cumulative growth for the financial year so far, from April to February 2019-20, stands at 0.9%

February saw the second straight month of improved industrial output after a contraction in December.

Plunge likely

However, the IIP is likely to plunge drastically again for March, due to the lockdown caused by the COVID-19 pandemic, which has resulted in a halt in most business. The mining sector saw a robust 10% growth in production in February, while the electricity sector saw 8.1% growth in comparison to the previous year. Manufacturing sector output grew more cautiously, at a rate of 3.2%.

In terms of industries, 13 out of 23 groups in the manufacturing sector showed positive production growth in February.

Industries manufacturing basic metals saw the highest output growth of more than 18%, while chemicals manufacturing saw production rise 8%.

However, the auto sector saw a major slump in February, with the manufacture of motor vehicles, trailers and semi-trailers contracting 15.6%. Computer and electronics manufacturing output also saw negative growth of almost 15%.

Overall, capital goods contracted almost 10%, while consumer durables saw negative growth of 6.4%. However, primary goods saw output grow more than 7% and intermediate goods grew over 22%, the data showed.


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Printable version | Oct 16, 2021 1:14:14 PM | https://www.thehindu.com/business/industrial-output-grows-45-in-feb/article31302511.ece

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