IIP Data For December 2022: India’s industrial production in December 2023 expanded 4.3 per cent, according to the latest IIP data released on Friday. The manufacturing sector output grew 2.6 per cent during the month.
According to the latest data released by the National Statistical Office (NSO) on Friday, mining saw a growth of 9.8 per cent in December 2022 and the electricity production witnessed a rise of 10.4 per cent.
During April-December 2022, the overall industrial output based on the Index of Industrial Production (IIP) grew 5.4 per cent. During the period, mining saw an expansion of 5.4 per cent and electricity witnessed 9.9 per cent growth.
Aditi Nayar, chief economist and head (research & outreach) at ICRA, said, “The IIP growth printed at 4.3 per cent in December 2022, in line with our forecast, displaying a step up from the anemic average rise in the previous two months, the individual performances of which were besieged by base effects related to a shift in the festive calendar.”
She added that the disaggregated use-based data remains decidedly uneven, ranging from contractions in intermediate goods and consumer durables to a robust 7-9 per cent expansion for the remaining four categories.
“The YoY growth of most available high frequency indicators improved in January 2023 relative to December 2022, partly reflecting a favourable base owing to the onset of the third wave of Covid-19 witnessed in January 2022, based on which we expect the overall IIP growth to rise to 5-7 per cent in the month,” Nayar said.
She also said that going forward, the YoY growth in the IIP is likely to improve in the ongoing quarter (+2.4 per cent YoY in Q3 FY2023), partly boosted by the typical year-end push in volumes to achieve targets as well as a low base of the third wave of Covid-19. However, we remain watchful of the impact of a slowdown in external demand and the consequent decline in merchandise exports on the performance of the manufacturing sector.
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