NEW DELHI (Reuters) – India’s industrial output grew at the fastest annual rate in four months in February, increasing 5.7% compared with the same month last year, government data showed on Friday.
Economists polled by Reuters had estimated year-on-year growth of 6% in February. Annual industrial output growth for January was revised to 4.1% from 3.8%.
Manufacturing output in February rose 5% year on year, slower than the 5.9% rise posted in the same month last year.
Electricity generation in February was up 7.5%, against 8.2% growth in the same month a year ago. However, mining activity increased, expanding by 8% versus a 4.8% rise a year earlier.
Production of infrastructure goods grew 8.5% year on year as against 9% growth in the same month last year. Capital goods expanded by 1.2% versus an 11% increase a year ago.
Output of consumer durables, such as automobiles, fridges and washing machines, rose 12.3% in February, compared with an annual contraction of 4.1% in the same month last year.
Consumer non-durables, contracted 3.8% year on year against 12.5% growth recorded in the same month last year.
Industrial output in the first 11 months of the fiscal year, which started in April 2023, was up 5.9%, against a 5.6% rise in the same period a year earlier.
Output was in line with expectations, said Aditi Nayar, an economist at ICRA, adding that high-frequency indicators suggest softening economic activity in March may lead to an annual industrial output rise of 4.5%-5.5%.
(Reporting by Nikunj Ohri and Manoj Kumar; editing by Jason Neely and Hugh Lawson)
