According to the data that was made public by the National Statistical Office in the first month of the current fiscal year, the manufacturing sector had an increase of 6.3% in its overall growth (NSO).
According to statistics that was issued by the government on Friday, the rate of growth of industrial production increased to a seven-month high of 7.1% in April. This increase was driven by improved performance in the electricity and mining sectors.
According to statistics on the Index of Industrial Production (IIP) provided by the National Statistical Office in the first month of the current fiscal year, the manufacturing sector saw growth of 6.3%. This increase was achieved in the first month of the current fiscal year (NSO).
In August of 2021, the rate of increase in IIP growth reached a prior high of 13%.
The National Statistical Office (NSO), on the other hand, stated that the growth rates during the equivalent time of the preceding year are to be interpreted taking into consideration the extraordinary conditions brought about by the COVID-19 pandemic beginning in March of 2020.
According to the statistics, the growth rates for the electricity and mining industries were 11.8 and 7.8 percent, respectively.
According to the use-based categorization, the capital goods sector reported a rise of 14.7%, while the consumer durables sector reported an expansion of 8.5%.
According to further information provided by the NSO, the primary goods, intermediate goods, infrastructure/construction goods, and consumer non-durables sectors each had growth of 10.1%, 7.6%, 3.8%, and 0.3% correspondingly.
ICRA’s Chief Economist, Aditi Nayar, stated that “the low base of the second wave of COVID-19 bumped up the IIP growth to an 8-month high of 7.1 per cent in April 2022, although it trailed our expectation (9.2 per cent), led by a weaker than anticipated performance of mining.” This was due to the fact that the mining industry did not perform as well as expected. She went on to say that the lacklustre performance of capital goods production in comparison to its level before COVID lends credence to the theory that an increase in capacity utilisation during the fourth quarter of 2021-22 will not result in a rapid expansion of private sector capacity. This is because of the uncertainties caused by the unfolding of geopolitical events.
The founder and chief executive officer of Millwood Kane International, Nish Bhatt, stated that the volume of industrial production has increased both month-over-month and year-over-year.
“Although the industrial growth has seen an increase, it has been quite irregular, and it requires continuous growth over a long period of time for policymakers to take note of it,” he pointed out. “Despite the fact that the industrial growth has seen an uptick, it has been highly erratic.”
Bhatt mentioned that the next important piece of information to keep an eye out for is the Consumer Price Index (CPI), which would be published the following week.