Industrial output growth at 8-month low of 2.7% in April

Growth in industrial production fell to an eight-month low of 2.7 percent in April from an upward revised figure of 3.94 percent in March due to high base effect and a sequential decline registered in the output of the mining sector, according to data released by National Statistics Office (NSO) on Wednesday.

- SHIVA RAJORA

The index of industrial production (IIP) data showed that the output of the mining sector (-0.2 percent) contracted during April for the first time in eight months. Meanwhile, output in the electricity sector (1.1 percent) decelerated in April to a seven-month low. Output in the manufacturing sector grew 3.4 percent, decelerating slightly from March. In April 2024, the IIP had grown by 5.2 percent.

Madan Sabnavis, chief economist, Bank of Baroda, said that the industrial growth in April comes as a positive indicator to start the new financial year considering that the core sector performance during April was sub-optimal.