Acuité Ratings & Research Limited’s Post

India's industrial production expanded by 5.0% in April'24, in line with expectations. The pace was however lower than last month's upwardly revised growth 5.4% (revised up from 4.9%). Says Suman Chowdhury, Chief Economist and Head – Research, Acuité Ratings & Research Limited: "IIP data for Apr'24 indicates a healthy momentum in domestic industrial activity after a strong performance in FY24. While there has been a relatively muted performance of the manufacturing sector in April, the mining and the electricity recorded solid annualized growth. The output trends of the latter segments are correlated as higher demand for electricity in the summer months also leads to higher demand for coal. In terms of use based categories, infrastructure goods continue to notch up a robust growth of 8.0% YoY, driven by the increased public capital investments. Consumer goods output has remained a relative outlier with a muted 2.1% YoY growth in Apr'24; while there is an expectation of a recovery in consumer demand, non-durable consumer goods (FMCG) output has contracted by 2.4%." Download the report here: https://lnkd.in/d_vXkPFB Sankar Chakraborti #IIP #economy #India

#iip #industrialgrowth #india #indianeconomy #macroeconomy Growth in India's industrial output accelerated to 5.7 percent in February, according to data released by the Ministry of Statistics and Programme Implementation on April 12. At 5.7 percent, the latest industrial growth figure as per the Index of Industrial Production (IIP) is higher from the January 2023 figure of 3.8 percent. Read on

#industrialgrowth #growth #macroeconomy #indianeconomy Festive season push helped India’s industrial growth to a three-month high of 3.5 percent in October, compared to 3.1 percent in the previous month, data released on December 12 showed. October marks the second consecutive month of rise in industrial output, after a slight contraction in August. The reading was in line with a Moneycontrol poll of 15 economists, which predicted growth to rise to 3.6 percent. Read on

🚀 India’s Industrial Output Bounces Back! A Positive Turn for Growth! 🇮🇳 After a contraction of 0.1% in August, the latest data shows India’s Index of Industrial Production (IIP) has rebounded to a 3.1% growth in September! 🌱 Here’s what led the charge: ✅ Manufacturing output surged by 3.9%, indicating strong momentum. ⚡️ Electricity generation rose by 0.5%, a modest yet steady increase. ⛏️ Mining activity showed slight improvement, up by 0.2%. Sector-wise growth highlights: • Primary Goods: +1.8% • Capital Goods: +2.8% • Intermediate Goods: +4.2% • Infrastructure/Construction Goods: +3.3% • Consumer Durables: A remarkable 6.5% surge 💥 • Consumer Non-durables: Up 2.0% The festive season and a broad-based recovery are driving this positive shift, despite an unfavourable base from last year. 📈 According to Aditi Nayar, Chief Economist at ICRA, we can expect 3.0-4.0% YoY growth in October. 🔥The industrial sector is showing signs of resilience, and this rebound reflects renewed consumer demand and stronger manufacturing activity. While challenges remain, the momentum is a promising sign for the upcoming months. Let’s stay optimistic and keep building! 💪🏗️ #IndustrialGrowth #Manufacturing #EconomicRecovery #IndiaEconomy #Leadership business Outlook Source ET

India's industrial output rose 3.8% year-on-year in January, slightly below economists' expectations of 4.1%. December's industrial output was revised upwards to 4.2% from 3.8%. Read more at: https://ow.ly/gmXp50QRUTY #IndustrialOutput | #Growth | #Economy | #India | #January

Core Sector Growth touched a new low in June : #coresector #indianeconomy The core sector in India grew by only 4% in June 2024, marking the lowest growth rate in the last 20 months. The core sector includes eight industries: coal, crude oil, natural gas, refinery products, fertilizers, steel, cement, and electricity. Several factors contributed to this modest growth: 1. Sluggish Industrial Output - Slowdown in industrial production, particularly in key sectors like steel and cement, has impacted overall core sector growth. 2. Supply Chain Disruptions - Ongoing supply chain issues and logistical challenges have affected the production and distribution of core sector goods. 3. Global Economic Conditions - Unfavorable global economic conditions, including fluctuating commodity prices and geopolitical tensions, have weighed on sector performance. 4. Demand Constraints - Weak domestic demand, partly due to high inflation and reduced consumer spending, has constrained growth in several core industries. 5. Policy and Regulatory Factors - Delays in policy implementation and regulatory approvals may have hindered the growth momentum in certain sectors. The 4% growth rate indicates a need for strategic interventions to stimulate core sector performance and ensure sustained economic development. Addressing supply chain bottlenecks, boosting domestic demand, and enhancing industrial productivity are crucial to reversing this trend.

India's core sector growth eased to 20-month low of 4 percent in June, from 6.4 percent in the previous month, as five of the eight industries witnessed a slowdown in growth from the previous month. The first quarter growth was also lower at 5.7 percent compared with 6 percent in the first quarter of the previous year. The combined Index of Eight Core Sector Industries measures the output of key sectors - cement, coal, crude oil, electricity, fertilisers, natural gas, refinery products and steel - which have a 40% weight in the Index of Industrial Production (IIP). While coal, cement and fertilisers witnessed a pick up in activity compared with the previous month, the other five industries witnessed a slowdown with two sectors—crude oil and refinery products—witnessing a contraction. Coal retained its double digit growth for second month in a row, rising 14.8 percent in June compared with 10.2 percent in the previous month. On the otehr hand, cement grew at 2.7 percent from 1.6 contraction witnessed in May. Steel slowed sharply to 2.7 percent from 6.8 percent in the previous month, and electricity growth nearly halved to 7.7 percent. Sequentially, the eight core industries contracted 3.1 percent. Outlook improving The Indian economy is likely to perform better than earlier expected, carrying the momentum from the previous fiscal. Reserve Bank of India recently revised India's growth forecast upward to 7.2 percent from 7 percent expected earlier. The International Monetary Fund also expects the economy to grow at 7 percent compared with 6.8 percent projected earlier. The Economic Survey released on July 22 pegged growth at 6.5-7 percent. The National Council of Applied Economic Research in its monthly economic outlook noted that growth could inch higher than 7 percent in the current fiscal. “Based on the momentum in the high frequency indicators; normalised monsoon; a relatively benign global outlook; and receded electoral uncertainty, both in India and in the rest of the world, growth will likely turn out to be higher than 7 percent, and possibly closer to 7.5 percent,” said Poonam Gupta, director general, NCAER. The government kept its capital spending target unchanged at Rs 11.11 lakh crore in the Bugdet presented on July 23.

#iip #industrialgrowth #manufacturingsector #macroeconomy #indianeconomy India's industrial output growth, as measured by the Index of Industrial Production (IIP), slowed to 3.8% in January this year from 4.2% in December 2023 owing to poor show by the manufacturing sector. According to government data released on Tuesday, the manufacturing sector grew at 3.2% in January compared with 4.5% in December 2023. The data also shows that the December IIP was revised upwards to 4.2% following a revision of core sector growth to 4.9% from 3.8%. Read on

Annualized growth in India's industrial production (IIP) accelerated to a 7-month high of 5.9% in May'24 from 5.0% in Apr'24. Says Suman Chowdhury, Chief Economist and Head – Research, Acuité Ratings & Research Limited: "Industrial output in May'24 has been significantly better than expectation at 5.9% YoY, supported by steady output in the manufacturing and the mining sector along with a double digit growth in electricity output. Sharply higher power demand reflects more severe summer heat conditions across India which has led to steadily rising usage of household air conditioners and also higher usage of water pumps. The electricity index has been at an all-time high with a sequential growth of 8.2% in May'24. Among the use based sectors, consumer durables has been an outperformer due to higher demand and production of cooling equipment. We expect the manufacturing sector to continue with the current momentum given the continuing thrust on the infrastructure sector. However, the moderation in mining and power generation growth in the subsequent months may lower industrial growth which will nevertheless, still be healthy averaging at 5.0% in FY25. This will support our GDP growth forecast of 6.8% in the current fiscal." Download the report here: https://lnkd.in/d_ceRVtD Sankar Chakraborti #IIP #economy #India

India's eight core sectors slowed to 5.2 % growth in March 2024 on MoM despite general elections are on and if factor inflation it is almost zero. Out of eight, five sectors either contraction or had slow growth. This slowdown will impact overall industrial growth. Data on March's IIP growth is expected in May 2024. If we match with earning reports of large caps same flat growth story. Growth is due to infrastructure / government-based spending, largely funded by borrowing money than own revenue. The way people are taking loan from Gold, as per RBI report where it has increased five times since 2018-19, it is going to take a big toll on consumptions-based economy. However, elections are about religion and caste and freebies and how to do drama in rallies and performance and future vision strategy is missing. Hope people vote to bring growth does not hype based growth. Source : https://lnkd.in/dkpAdQa7