Industrial growth rate increased to 3.8% in December

New Delhi (Uttam Hindu News): India’s industrial growth rate rose to 3.8% in December 2023 from an 8-month low of 2.4% in November, according to data released by the Ministry of Statistics and Program Implementation on Monday. India’s industrial production had increased by 5.1 percent in December 2022. Industrial growth rate for April-December 2023 now stands at 7% compared to 5.5% in April-December 2022.

Growth accelerated in December due to a strong performance by the manufacturing sector, which registered a growth of 3.9% compared to a disappointing 1.2% growth in November. The manufacturing sector contributes more than three-fourths to the Index of Industrial Production (IIP). The mining sector grew by 5.1% during December 2023, while the power generation sector grew by 1.2%.

Production of capital goods, which includes machinery used in factories, rose 3.2% during the month. This is a positive sign, as this segment reflects the actual investment taking place in the economy and is a force, which has a multiplier effect on the creation of jobs and income and is a measure of strength. Production of consumer non-durable goods such as refrigerators and washing machines increased by 5.2%, showing that demand for these goods is increasing with more jobs and higher incomes in the economy.