NEW DELHI: India's industrial growth rate recovered to 3.8% in December 2023 from the 8-month low of 2.4 per cent in November, data released by the Ministry of Statistics and Programme Implementation on Monday showed.
In December 2022, India's industrial output had grown by 5.1 per cent.
The industrial growth rate for April-December 2023 now works out to 7% as compared to 5.5 percent in April-December 2022.
The growth rate for December picked up on the back of a stronger performance of the manufacturing sector which posted a 3.9% growth as compared to the dismal 1.2 per cent growth in November. The manufacturing sector accounts for more than three-fourths of the index of industrial production (IIP).
The mining sector clocked a 5.1% growth while the electricity generation sector grew at 1.2% during December 2023.
The production of capital goods which comprise machines used in factories went up by 3.2% during the month. This is a positive sign as the segment reflects the real investment taking place in the economy and reis a strength which has a multiplier effect on the creation of jobs and incomes and is a measure of the strength.
The output of consumer nondurable goods such as refrigerators and washing machines increased by 5.2% which shows that demand for these goods is on the rise with more jobs and higher incomes in the economy.