INDIA’S industrial output grew at the fastest annual rate in four months in February, increasing 5.7 per cent compared with the same month last year, government data showed on Friday (Apr 12).

Economists polled by Reuters had estimated year-on-year growth of 6 per cent in February. Annual industrial output growth for January was revised to 4.1 per cent from 3.8 per cent.

Manufacturing output in February rose 5 per cent year on year, slower than the 5.9 per cent rise posted in the same month last year.

Electricity generation in February was up 7.5 per cent, against 8.2 per cent growth in the same month a year ago. However, mining activity increased, expanding by 8 per cent versus a 4.8 per cent rise a year earlier.

Production of infrastructure goods grew 8.5 per cent year on year as against 9 per cent growth in the same month last year. Capital goods expanded by 1.2 per cent versus an 11 per cent increase a year ago.

Output of consumer durables, such as automobiles, fridges and washing machines, rose 12.3 per cent in February, compared with an annual contraction of 4.1 per cent in the same month last year.

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Consumer non-durables, contracted 3.8 per cent year on year against 12.5 per cent growth recorded in the same month last year.

Industrial output in the first 11 months of the fiscal year, which started in April 2023, was up 5.9 per cent, against a 5.6 per cent rise in the same period a year earlier.

Output was in line with expectations, said Aditi Nayar, an economist at ICRA, adding that high-frequency indicators suggest softening economic activity in March may lead to an annual industrial output rise of 4.5 to 5.5 per cent. REUTERS