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Factory output growth slows to 3.8% in January
Mar-13-2024

Growth in factory output, based on the Index of Industrial Production (IIP), slowed to 3.8 per cent in January 2024, mainly due to poor performance of manufacturing, mining and power sectors. It was 5.8 in January 2023. The IIP figures for December 2023 was revised upward to 4.2 per cent from 3.8 per cent earlier estimate. For the month of January 2024, the Quick Estimates of IIP with base 2011-12 stood at 153.0. According to the data, during the April-January period of this fiscal, IIP growth touched 5.9 per cent, up from 5.5 per cent in the year ago period.

As per the latest data, the manufacturing sector's output growth decelerated to 3.2 per cent in January against 4.5 per cent a year ago. The power generation growth also slowed to 5.6 per cent in January from 12.7 per cent growth in the year ago period. The mining output growth decelerated to 5.9 per cent in the month under review against 9 per cent. The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of January 2024 stood at 144.1, 150.1 and 197.1 respectively.

As per use based classification, primary goods segment growth fell to 2.9 per cent in January 2024 from 9.8 per cent in a year ago. The capital goods segment growth fell to 4.1 per cent in January 2024 compared to a growth of 10.5 per cent in the year ago period. Intermediate goods segment growth rose to 4.8 per cent in January 2024 from 1.4 per cent in a year ago. 

Infrastructure/ Construction goods segment growth fell to 4.6 per cent in January 2024 from 11.3 per cent in a year ago. In January this year, consumer durables output expanded 10.9 per cent. It had contracted by 8.2 per cent in January 2023. Consumer nondurable goods output declined by 0.3 per cent compared to a 6.5 per cent expansion in January 2023.

The indices stood at 154.2 for Primary Goods, 109.2 for Capital Goods, 163.0 for Intermediate Goods and 185.0 for Infrastructure/ Construction Goods for the month of January 2024. Further, the indices for Consumer durables and Consumer non-durables stood at 120.7 and 163.9 respectively for the month of January 2024.

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