What Factors Contributed to India’s 3% Industrial Growth in March?

New Delhi, April 28 (NationPress) India's industrial growth, as per the Index of Industrial Production (IIP), has risen to 3 percent in March this year, rebounding from 2.9 percent in February, based on data released by the Ministry of Statistics on Monday.

The report indicated that the manufacturing sector, which plays a crucial role in providing quality employment for the nation’s young graduates from universities and engineering institutes, achieved a growth rate of 3 percent in March compared to the same month last year.

Moreover, the power sector experienced a remarkable growth of 6.3 percent during this period, while the mining sector lagged behind with a modest growth of only 0.4 percent in March.

Within the manufacturing sector, 13 out of 23 industry groups reported positive growth in March compared to the same month of the previous year. The leading contributors for the month included – “Manufacture of basic metals” (6.9 percent), “Manufacture of motor vehicles, trailers and semi-trailers” (10.3 percent), and “Manufacture of electrical equipment” (15.7 percent), as stated in the official release.

In the industry group “Manufacture of basic metals”, item groups such as “Flat products of Alloy Steel”, “Pipes and tubes of Steel”, and “Bars and Rods of Mild Steel” have made significant contributions to growth.

Similarly, in “Manufacture of motor vehicles, trailers and semi-trailers”, item groups including “Auto components/spares and accessories”, “Axle”, and “Bodies of trucks, lorries and trailers” have shown considerable growth.

In the group “Manufacture of electrical equipment”, key item groups like “Electric heaters”, “Transformers (Small)”, and “End facing connector for optical fibres and cables” exhibited strong growth.

The data on use-based classification reveals that production in capital goods, which includes machinery used in factories, increased by 2.4 percent in March. This segment serves as a crucial indicator of real investment within the economy, having a significant multiplier effect on job creation and income generation.

Additionally, there was a 6.6 percent rise in the production of consumer durables such as electronic devices, refrigerators, and televisions, reflecting a surge in consumer demand amidst increasing incomes.

The infrastructure sector reported a robust growth of 8.8 percent, supported by large-scale government projects in the highways, railways, and ports sectors.

According to the use-based classification, the top three contributors to the growth of IIP in March were infrastructure/construction goods, primary goods, and consumer durables, as highlighted in the official statement.