IIP growth rises to 5% on uptick in manufacturing

INDIA'S FACTORY OUTPUT picked up in January, with the index of industrial production (IIP) growth rising to 5% during the month from 3.5% in December, official data released on Wednesday showed.

- PRIYANSH VERMA

The uptick in output was supported by growth in manufacturing and mining, even as electricity production growth eased. In January, manufacturing growth improved to 5.5% from 3.4% in December, and mining to 4.4% from 2.7%. Electricity output growth, however, eased to 2.4% from 6.2% in December.

Economists expect the industrial output to grow around 5% in February, too, due to a relatively high base effect. Going forward, the decline in retail inflation will have some positive impact on industrial demand, and thereby output, they add.