Industrial output rises 2.4 percent

India’s industrial output increased by 2.4% in January as against a contraction of 0.6% in the previous month, giving an indication of revival in the Asia’s third largest economy, the government data. Manufacturing production registered a growth of 2.7% during the month under review. However, mining production slumped by 2.9% in January.

The factory output measured in terms of the Index of Industrial Production (IIP) has registered a cumulative growth of 1 percent in April-January 2012-13 period year-on-year, according to the Central Statistics Office (CSO).

The cumulative growth for electricity sector in the first 10 months of the current financial year is 4.7%. Manufacturing output has increased by 0.9%, while mining production has declined by 1.9% during the period under review.

“The growth in industrial and manufacturing sector remains an area of concern as positive growth of 2.4 percent in January 2013 comes over a low base. With 50% of manufacturing sectors registering negative growth, any sustained growth remains elusive in the sector in immediate future,” said Naina Lal Kidwai, president, Federation of Indian Chambers of Commerce and Industry (FICCI).

While some signs of revival of industrial activity are indicated, it is too early to assume that the slowdown has bottomed out and green shoots of recovery are around the corner,” said Adi Godrej, president, Confederation of Indian Industry (CII).