Industrial Production Growth Insights
Industrial production growth in February reached a six-month low at 2.9%, impacted by a high base and lacklustre demand.
Growth Comparisons
- February 2024: IIP grew by 5.6% aided by the leap year.
- January 2024: Growth was at 5.2%.
Sector-Specific Performance
- Mining: Growth slowed to 1.6%.
- Manufacturing: Growth at 2.9%.
- Electricity Generation: Relatively quicker growth at 3.6%.
Use-Base Classification
- Capital Goods: Robust growth at 8.3%.
- Infrastructure Goods: Growth at 6.6%.
- Primary Goods: Decelerated growth at 2.8%.
- Intermediate Goods: Growth slowed to 1.5%.
- Consumer Durable Goods: Increased output by 3.8%.
- Consumer Non-Durables: Continued negative growth at -2.1%.
Market Dynamics and Projections
- E-way Bills: Reached a record 124.5 million in March.
- Expected IIP Growth for March: Around 3%.
Demand and Economic Outlook
Rural demand shows improvement due to agricultural production and normal monsoon expectations. However, urban demand remains a concern.
Moody’s Analytics revised India's GDP forecast for 2025 downward by 30 bps to 6.1% due to US tariff threats.
Global Uncertainty and Economic Measures
The global uncertainty affecting private investment and consumption but noted the potential support from RBI's rate cuts and inflation moderation.
