IIP growth edges up to 1.3% in January from 0.7% a month back

India's industrial growth, as per the Index of Industrial Production (IIP), edged up to 1.3 percent in January from 0.7 percent in December, data released on March 11 by the National Statistical Office showed.

The marginal rise in industrial growth is not unexpected. Data released late last month showed India's eight core sectors expanded by 3.7 percent year-on-year in January as against 4.1 percent the previous month. With the eight core industries together accounting for 40.3 percent of the total weight of the IIP, IIP growth tends to track core sector data.

Industrial production had contracted by 0.6 percent in January 2021.

The manufacturing sector, which makes up over three-fourths of the IIP, grew by 1.1 percent in the first month of 2022, with the figure for December being revised to a growth of 0.2 percent from a contraction of 0.1 percent.

This is the fastest the manufacturing sector has grown in three months.

As per the use-based classification, two of the six goods - capital and consumer durables - saw their output shrink in January. Production of consumer non-durable goods, which had contracted in December, increased by 2.1 percent.

Output of primary and intermediary goods rose slightly, while that of infrastructure goods increased by 5.4 percent, the most in three months.

For April 2021-January 2022, industrial output has clocked a growth of 13.7 percent as against a contraction of 12.0 percent in the corresponding period of FY21.