India’s industrial growth, as per the Index of Industrial
Production (IIP), expanded by 1.7% in February from 1.5% in January, showed
data released on April 12 by the Ministry of Statistics and Programme
Implementation. The IIP had contracted by 3.2% in February 2021.
Industrial output was expected to increase in February,
as data released in late March showed that the output of India’s eight core
sectors increased by 5.8% year-on-year in February, up from 4% in the previous
Since the eight core industries make up 40.3% of total
IIP, industrial growth tends to rise when these sectors will start performing
According to the government data, the growth in the
mining sector was 4.5% as compared to a contraction of 4.4% in February 2021.
The manufacturing sector, which makes up over
three-fourths of the IIP, grew by just 0.8%, down from 1.3% in January 2022.
The sector has contracted 3.4% in February 2021.
Growth in power generation surged to 4.5% against a flat
growth of 0.1% in February 2021.
In the April-February period of the last financial year,
the IIP growth stood at 12.5% against a contraction of 11.1% in the
corresponding period of 2020-21.
According to the data, capital goods output showed a
growth of 1.1% against a contraction of 4.2% seen in February 2021.
The consumer durable goods segment showed a decline of
8.2% against a growth of 6.6% a year ago.
In February, the output of primary goods, intermediate
goods, and infrastructure goods grew at a faster rate compared to January.
However, the primary goods segment, which accounts for
nearly 34% of the index, grew by 4.6% in February as against a contraction of
4.6% in the year-ago period.
Intermediate goods and infrastructure/construction goods
output witnessed growth, while consumer non-durable segments declined.
The ministry said the growth rates over the corresponding
period of the previous year are to be interpreted considering the unusual
circumstances on account for the COVID-19 pandemic since March 2020. After
recording a contraction in several months during the pandemic period, the IIP
has remained in the positive territory since March 2021.