India's industrial production growth slowed to a three-month low in April, but the expansion still outperformed expectations, according to official data released on Wednesday.
The Ministry of Statistics and Programme Implementation reported that industrial production grew by 5.0 percent annually, down from March's 5.4 percent rise. Despite this decline, the growth surpassed economists' forecast of 4.6 percent. In comparison, the output had increased by 4.6 percent in April 2023.
Breaking down the sectors, mining saw a growth of 6.7 percent, manufacturing rose by 3.9 percent, and electricity output surged by 10.2 percent in April.
Positive contributions to the Index of Industrial Production (IIP) came from primary goods, capital goods, intermediate goods, infrastructure and construction goods, and consumer durable goods. However, non-durable consumer goods experienced negative growth.
A recent Purchasing Managers' survey indicated that India's manufacturing sector continued to grow robustly in May, albeit at a slower rate due to an intense heatwave impacting production volumes. The HSBC manufacturing PMI dropped to 57.5 in May from 58.8 in April.
Additionally, last week, the Reserve Bank of India revised its growth outlook for 2024-25 upwards to 7.2 percent from 7.0 percent. Should this projected GDP growth of 7.2 percent be realized, it will mark the fourth consecutive year of growth at or above 7 percent, noted RBI Governor Shaktikanta Das.
Further data released today showed that inflation eased to a 12-month low in May, primarily driven by lower costs for fuel and light. Consumer price inflation decreased to 4.75 percent from 4.83 percent in April.
