Factory output rises 4.2% in April, fuelled by mining and manufacturing.
14 Jun 2023
2 Min Read
CW Team
India's industrial production growth in April experienced an increase to 4.2% compared to 1.7% the previous year, driven by a rise in manufacturing and mining.
However, the growth in factory output was weaker compared to April 2022, when it reached 6.7%.
In the same period, infrastructure goods showed a growth of 12.8%, which was higher than the 4% expansion recorded the previous year. On the other hand, primary goods registered a growth of 1.9% compared to 10.3% a year ago.
In April 2023, power generation witnessed a decline of 1.1% compared to a growth of 11.8% in the previous year. Mining output, however, increased by 5.1% during the month under review, surpassing the growth rate of 8.4% from a year ago.
Rajani Sinha, Chief Economist at CareEdge, stated, "The industrial output surprised on the upside with a 4.2% growth in April, rebounding from subdued growth in the previous month. The improvement in the manufacturing sector and robust growth in the construction sector are encouraging. However, the continued weakness in external demand remains concerning, as reflected in the muted performance of export-intensive sectors such as textiles, apparel, leather, and related products."
In April, the output of intermediate goods grew by 0.8% compared to a growth rate of 7.1% during the same period last year.
Economists highlighted that the government's capital expenditure (capex) spending appeared to have supported infrastructure output. According to an HDFC report, the accounts of major state governments showed that they began incurring infrastructure expenditure in April 23, while government spending remained unchanged.
"The capex spending by states could have supported double-digit growth in the infrastructure and construction segment observed in April. Further, the output of capital goods also grew at a healthy pace of 6.2% in April-23," stated the report.
India's industrial production growth in April experienced an increase to 4.2% compared to 1.7% the previous year, driven by a rise in manufacturing and mining.
However, the growth in factory output was weaker compared to April 2022, when it reached 6.7%.
In the same period, infrastructure goods showed a growth of 12.8%, which was higher than the 4% expansion recorded the previous year. On the other hand, primary goods registered a growth of 1.9% compared to 10.3% a year ago.
In April 2023, power generation witnessed a decline of 1.1% compared to a growth of 11.8% in the previous year. Mining output, however, increased by 5.1% during the month under review, surpassing the growth rate of 8.4% from a year ago.
Rajani Sinha, Chief Economist at CareEdge, stated, The industrial output surprised on the upside with a 4.2% growth in April, rebounding from subdued growth in the previous month. The improvement in the manufacturing sector and robust growth in the construction sector are encouraging. However, the continued weakness in external demand remains concerning, as reflected in the muted performance of export-intensive sectors such as textiles, apparel, leather, and related products.
In April, the output of intermediate goods grew by 0.8% compared to a growth rate of 7.1% during the same period last year.
Economists highlighted that the government's capital expenditure (capex) spending appeared to have supported infrastructure output. According to an HDFC report, the accounts of major state governments showed that they began incurring infrastructure expenditure in April 23, while government spending remained unchanged.
The capex spending by states could have supported double-digit growth in the infrastructure and construction segment observed in April. Further, the output of capital goods also grew at a healthy pace of 6.2% in April-23, stated the report.
Next Story
unWOOD transforms plastic waste into durable wood alternative
unWOOD, a breakthrough innovation, is converting hard-to-recycle plastic waste into a durable alternative to natural wood. Developed through a proprietary process called Intelligent Compounding, unWOOD uses a Macro Molecular Fiber Matrix (MMFM) structure to replicate the strength, look, and feel of hardwood鈥攚ithout the environmental cost.Conceptualised by Dr Babu Padmanabhan, the material addresses key flaws in traditional plastic recycling by consuming minimal energy, using zero water, and generating no microplastics. 鈥淎ny application that introduces plastics into areas where it cannot be..
Next Story
India's first AI-integrated campus announced in Noida
Yashoda Hospital and Bhutani Infra have announced plans to develop India鈥檚 first fully AI-integrated mixed-use campus in Greater Noida West. The upcoming project will feature a hospital, retail spaces, offices, SOHOs, serviced apartments, and a hotel鈥攁ll operating within a self-learning, generative AI-powered ecosystem.The AI-first campus will integrate real-time data systems, predictive analytics, and adaptive infrastructure to offer personalised experiences across functions. From AI-enabled footfall tracking and dynamic energy optimisation to smart F&B and retail insights, the develo..
Next Story
Postal Dept Unveils Stamp Honouring 125 Years of Kodaikanal Observatory
The Department of Posts is proud to release a commemorative postage stamp celebrating 125 years of the Kodaikanal Solar Observatory (KSO). Recognising the legacy of the KSO through this special stamp is a fitting tribute to one of India鈥檚 most significant scientific institutions and highlights the nation鈥檚 long-standing contribution to global science.The Commemorative stamp was released by S Rajendra Kumar, Chief Postmaster General, Karnataka Circle in the gracious presence of A S Kiran Kumar, Chairperson, Governing Council, IIA and Former Chairman, ISRO and other esteemed guests at Indian..
