New Delhi: India’s industrial production growth slowed to 3.8 per cent in January, while the February retail inflation at 5.09 per cent remained within the Reserve Bank’s comfort zone for the sixth straight month, according to the latest government data.
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, according to the data released by the Ministry of Statistics & Programme Implementation.
In December 2023, IIP growth stood at 4.2 per cent. It was 2.4 per cent in November 2023.
The ministry also released the Consumer Price Index (CPI) for February, showing that retail inflation eased to a four-month low of 5.09 per cent. It was 5.1 per cent in January 2024 and 6.44 per cent in February 2023. The previous low was at 4.87 per cent in October 2023.
The Reserve Bank of India has been tasked by the government to ensure retail inflation remains at 4 per cent with a margin of 2 per cent on either side.
Last month, the central bank projected the CPI inflation at 5.4 per cent for the current fiscal (2023-24) and 5 per cent for the January-March quarter.
The inflation in the food basket rose marginally to 8.66 per cent in February from 8.3 per cent in the preceding month, according to the data released by the National Statistical Office (NSO).
On a month-on-month basis, inflation eased marginally in the case of vegetables, fruits, ‘oils and fats’ and ‘pulses and products’ in February. However, the rate of price rise was higher in ‘cereals and products’, ‘meat and fish’ and ‘milk and products’ segments.
The food basked has nearly 50 per cent weight in the CPI.
According to the data on factory output, 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.
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.
As per use-based classification, 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.
In January this year, consumer durables output expanded 10.9 per cent. It had contracted by 8.2 per cent in January 2023.
Consumer non-durable goods output declined by 0.3 per cent compared to a 6.5 per cent expansion in January 2023.
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