India's February 2022 Industrial Production Rises Sequentially, YoY

Rise in manufacturing activity pushed India’s industrial output higher on a sequential as well as on a year-on-year basis in February 2022, official data showed on Tuesday. The Index of Industrial Production (IIP) rose by 1.7percent last month from a rise of 1.46 percent(revised) in January 2022. Similarly, the industrial production rate was higher on a year-on-year basis. In February 2021, the IIP fell by(-)3.2 percent.

“For the month of February 2022, the ‘Quick Estimates of Index of Industrial Production’(IIP) with base 2011-12 stands at 132.1. The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of February 2022 stand at 123.2, 130.8 and 160.8 respectively”, said the Ministry of Statistics and Programme Implementation.

On a YoY basis, the mining excavation output grew by 4.5 percent from (-) 4.4 percent in February 2021. The manufacturing production inched up by 0.8 percent from a fall of (-) 3.4 percent and electricity generation rose at a sharper rate of 4.5 percent from 0.1 percent in February 2021.

Among the major use based segments, the February 2022 data, on a YoY basis, showed that manufacturing of primary goods grew by 4.6 percent from a fall of (-) 4.6 percent, whereas capital goods production inchedup by 1.1 percent from(-)4.2 percent, and intermediate goods’ increased by 4.3 percent from(-)5.3 percent.

When it comes to analyzing the ongoing economic recovery, growth in index of industrial production(iip) continues to paint a dismal picture

Similarly the production of infrastructure or construction goods rose by 9.4 percent from (-) 3.5 percent. However, consumer durables’ production degrew by(-) 8.2 percent from a rise of 6.6 percent and the sub segment of consumer non durables fell by(-)5.5 percent from(-)3.8 percent.

“When it comes to analyzing the ongoing economic recovery, growth in Index of Industrial Production (IIP) continues to paint a dismal picture”, said Sunil Kumar Sinha, Principal Economist, India Ratings and Research.

“As the geopolitical situation has worsened after the Russia Ukraine conflict and has the potential to turn into a major headwind for the economy, IndRa believes ongoing industrial recovery will need more policy support. Against this backdrop, IndRa expects the IIP growth to remain in low single digits in the near term”, he added.