India's industrial output slows to 4.9 % in March '24, manufacturing, power rise

India's factory output, measured by the Index of Industrial Production (IIP), in March 2024 posted 4.9 per cent year-on-year growth, moderating from 5.6 per cent in February 2024 and ending fiscal 2024 on a sober note. The IIP growth was led by a robust expansion in electricity even as manufacturing growth rose to a five-month high, albeit on a very low base.

- NIVEDITA MUKHERJEE

The growth rate of the mining sector for the month of March 2024 over March 2023 was 1.2 per cent, manufacturing grew 5.2 per cent yoy while the growth rate of electricity for the month of March 2024 was 8.6 per cent more than that in March 2023, as per Government data on Friday. Within the manufacturing sector, the top three positive sectoral contributors to the growth of IIP for the month of March 2024 are 'basic metals with 7.7 per cent growth, pharmaceuticals, medicinal chemical and botanical products with growth of 16.7 per cent and manufacture of other transport equipment with growth of 25.4 per cent.

Dharmakirti Joshi, Chief Economist, CRISIL notes that the slowdown in March was driven by infrastructure and construction goods, which reflects moderating government capital expenditure at the end of the fiscal. "Among consumer products, while durables slowed, non-durables revived this month, hinting at a moderation in urban demand and a revival in rural demand," says Joshi.