New Delhi: India’s industrial growth, based on the Index of Industrial Production (IIP), bounced back to 5 per cent in January this year after slowing to 3.2 per cent in December, according to data released by the Ministry of Statistics on Wednesday.
The data showed that the manufacturing sector, which provides quality jobs for the country’s young graduates passing out of the country’s universities and engineering institutes, recorded a 5.5 per cent growth in January, up from 3.6 per cent in the same month last year.
Mining production grew by 4.4 per cent during the month compared to 6 per cent in January 2024 and power output increased only 2.4 per cent during the month.
Within the manufacturing sector, 19 out of 23 industry groups have recorded positive growth in January 2025 over January 2024. The top three positive contributors for the month of January 2025 were “Manufacture of basic metals” (6.3 per cent), “Manufacture of coke and refined petroleum products” (8.5 per cent), and “Manufacture of electrical equipment” (21.7 per cent).
In the industry group “Manufacture of coke and refined petroleum products”, items such as diesel, petrol and liquefied petroleum gas (LPG) have shown a significant contribution to growth.
Similarly, in the industry group “Manufacture of electrical equipment” item group, articles like transformers (small), end-facing connectors for optical fibres and cables, and electric heaters have made a sizeable contribution to growth.
The figures on use-based classification show that the production of capital goods, which comprise machines used in factories, went up by 7.8 per cent in January. This segment reflects the real investment taking place in the economy which has a multiplier effect on the creation of jobs and incomes going ahead.
There was also a 7.2 per cent increase in the production of consumer durables such as electronic goods, refrigerators, and TVs during November reflecting the higher consumer demand for these items amid rising incomes.
Based on use-based classification, the top three positive contributors to the growth of IIP for the month of January 2025 are primary goods, infrastructure/construction goods, and intermediate goods.
The industrial growth rate in December had slowed after accelerating to a 6-month high of 5.2 per cent in November.
(IANS)
