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IIP hits eight-month high of 7.1% in April on favourable base effect

11 Jun 2022 Evaluate

With improved performance by power and mining sectors, industrial output growth or Index of Industrial Production (IIP) rose to an eight-month high of 7.1 per cent in April, although it has been aided by a favourable base effect. The previous high for IIP growth was 13 per cent in August 2021. In March 2022, the IIP growth was 1.9 per cent. For the month of April 2022, the Quick Estimates of IIP with base 2011-12 stood at 135.1.

As per the data released by the Ministry of Statistics and Programme Implementation, Manufacturing sector recorded a growth of 6.3 per cent in the first month of the current financial year. Growth rates over corresponding period of the previous year are to be interpreted considering the unusual circumstances on account of the COVID-19 pandemic since March 2020. Power and mining sectors grew by 11.8 per cent and 7.8 per cent, respectively. The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of April 2022 stood at 116.0, 132.5 and 194.5 respectively.

As per use-based classification, the capital goods segment recorded a growth of 14.7 per cent, while the consumer durables sector expanded by 8.5 per cent. Further, the primary goods, intermediate goods, infrastructure/ construction goods, and consumer non-durables sectors expanded by 10.1 per cent, 7.6 per cent, 3.8 per cent, and 0.3 per cent, respectively.

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