Industrial output growth slows to 3.8% in January

India’s industrial output growth slows to 3.8% in January, with manufacturing and consumer durables showing mixed results.

The industrial output growth slowed to 3.8% in January, from an upgraded uptick of 4.24% in December. The manufacturing sector’s growth slowed to 3.2% from 4.5% a month ago, even as the uptick in mining and electricity generation accelerated to 5.9% and 5.6%, respectively.

The production of consumer durables jumped 10.9%, the highest growth in three months, but gained from base effects as their output had contracted 8.2% in January 2023.

Capital goods production picked up pace to grow 4.1% in January, and intermediate goods also grew faster at 4.8% compared to 3.9% in December 2023. However, the growth rates for primary goods and infrastructure/construction goods eased to 2.9% and 4.6%, respectively in January.

Eight of the 23 manufacturing segments tracked by the National Statistical Office to compute the Index of Industrial Production (IIP) contracted in January, with computers, electronics and optic products seeing the steepest fall of 11.9%. Pharmaceuticals’ output remained flat compared to last January.

Between April 2023 and January 2024, electronics and computers have contracted 14%, second only to the 17.5% drop in apparel production over the same period. In January, apparel production fell 1.6%.

Other transport equipment grew 25.3%, fabricated metal products rose 21.4%, followed by motor vehicles and furniture whose output rose 18% and 15.1%, respectively, in January.