January 13, 2023
Some of the reasons aiding this growth are China opening its markets after 2 years of the pandemic and the U.S. poised to lower its interest rates
The National Statistical Office (NSO) has predicted that the economic growth of the country in 2022-23 will be 7%
The government had previously said that the country would turn into a US$ 5 trillion economy by 2025
The realistic medium-term growth rate stands at 6.5%
India’s industrial output rose by 7.1% in November 2022, after decreasing by 4.2% in October 2022 according to government data.
Media reports said that the increase was aided by base effects as November 2021 had clocked a 1% overall growth, and a 6% rise in output levels over October last year. October 2022 recorded the lowest level for the Index of Industrial Production (IIP) since November 2021. Manufacturing input started growing by 6% in November 2021 and rising to 6.55% from October, last year.
As per the report, electricity generation went up by 12.7% in November 2022, compared to 1.2% year-on-year (YoY) growth in October 2022. On the other hand, mining output growth spiked from 2.5% in October to 9.7% in November, last year. Additionally, output for consumer non-durables grew 8.9% in November after four months of contraction.
The output for consumer durables grew by 5.1% in November last year, compared to a 5.7% decrease in November 2021. On the other hand, capital goods which had contracted 1.7% in October, bounced up 20.7% in November and were 11.1% higher month-on-month (MoM), as per media reports.
Infrastructure and construction goods rose by 12.8% in November last year, with the highest output since March 2022. On the other hand, primary goods production rose by 4.7% and intermediate goods went up by 3%.
Of the 23 different manufacturing sectors, nine sectors reported close to 10% or higher growth. This includes other transport equipment by 24%, motor vehicles by 22.2%, printing of recorded media at 22.1% and machinery & equipment by 20.8%. Experts said that production grew for all six sub-sectors in November 2022 for the first time since June 2022.
By achieving reduced customs duties for raw materials through Free Trade Agreements (FTAs), industrial production will witness further growth.
Source: The Hindu