India’s industrial growth clocks 3 per cent growth in March

New Delhi, April 28 India's industrial growth, based on the Index of Industrial Production (IIP), edged up to 3 per cent in March this year after slowing to 2.9 per cent in February, according to data released by the Ministry of Statistics on Monday.

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 3 per cent growth in March compared to the same month last year.

The power sector output grew by a more robust 6.3 per cent growth during the month while the mining sector proved to be a laggard with a mere 0.4 per cent growth in March.

Within the manufacturing sector, 13 out of 23 industry groups have recorded a positive growth in March this year compared to the same month of the previous year. The top three positive contributors for the month are – "Manufacture of basic metals" (6.9 per cent), "Manufacture of motor vehicles, trailers and semi-trailers" (10.3 per cent) and "Manufacture of electrical equipment" (15.7 per cent), according to the official statement.

In the industry group "Manufacture of basic metals", item groups "Flat products of Alloy Steel", "Pipes and tubes of Steel", and "Bars and Rods of Mild steel" have shown significant contribution in growth.

Similarly, "Manufacture of motor vehicles, trailers and semi-trailers", item groups "Auto components/spares and accessories", "Axle", "Bodies of trucks, lorries and trailers" have registered a significant growth.

In the industry group "Manufacture of electrical equipment", item groups "Electric heaters", "Transformers (Small)", and "End facing connector for optical fibres and cables" recorded a strong growth.

The figures on use-based classification show that the production of capital goods, which comprise machines used in factories, went up by 2.4 per cent in March. 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 6.6 per cent increase in the production of consumer durables such as electronic goods, refrigerators, and TVs, reflecting the higher consumer demand for these items amid rising incomes.

The infrastructure sector clocked a strong growth of 8.8 per cent on the back of big ticket government projects being implemented in the highways, railways and ports sectors.

Based on use-based classification, the top three positive contributors to the growth of IIP for the month of March are infrastructure/ construction goods, primary goods and consumer durables, the official statement added.

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