India’s Industrial Production Growth Slows to 4.9% in March 2024

India’s industrial production growth rate decelerated to 4.9% in March 2024 compared to 5.7% in February, as per data from the Ministry of Statistics and Programme Implementation. The Index of Industrial Production (IIP) for FY24 stood at 5.8%, up from 5.2% in the previous year. In March 2023, industrial output had grown by 1.9%.

Manufacturing Sector

The manufacturing sector, a crucial component of India’s industrial landscape, saw a growth of 5.2% in March 2024, slightly up from 5% in February. Key contributors to this growth included the manufacturing of basic metals (7.7%), pharmaceuticals and medicinal products (16.7%), and other transport equipment (25.4%).

Sub-Sector Performance

Within manufacturing, specific areas demonstrated notable growth. “Manufacture of basic metals,” “Manufacture of pharmaceuticals, medicinal chemical and botanical products,” and “Manufacture of other transport equipment” emerged as the top three positive contributors to IIP growth in March 2024.

Mining and Power Sectors

In March 2024, mining production increased by 1.2%, while power output surged by 8.6%. These sectors play pivotal roles in India’s industrial landscape, contributing to overall economic activity and growth.

Trend Analysis

The industrial production trajectory showed fluctuation in recent months, with a high of 11.9% in October 2023, followed by a decline to 2.5% in November, and subsequent modest growth rates in December and January 2024.