IIP Data: Industrial output rises 1.1% in March 2023 against 2.2% in year-ago month

IIP growth data: India's factory output based on the Index of Industrial Production (IIP) rose 1.1 per cent in March, according to official data released on Friday. In contrast, factory output measured in terms of the Index of Industrial Production (IIP) had grown 2.2 per cent in March 2022. 

The data released by the National Statistical Office (NSO) showed that the manufacturing sector's output increased 0.5 per cent in March 2023.

"IIP growth is disappointing at 1.1% and lower than our expectation of 3.5%. Manufacturing has not done well despite the yearend with consumer goods registering negative growth," added Madan Sadnavis, chief economist, Bank of Baroda. 

However, according to many economists, the decline in Industrial production growth declined to 1.1 per cent in March from 5.6% in the previous month mainly on account of a 1.6% contraction in power output and a feeble 0.5 per cent growth in manufacturing. "The month-on-month data of IIP for FY 2023, industrial production was up 5.1 per cent YoY and given that RBI has now more maneuvering headroom, this can significantly improve in FY-24,” added Mohit Ralhan - Chief Executive Officer, TIW Capital. 

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