Winning Bizness Desk

Mumbai. The Industrial Growth (IIP) figures were released which found that India's factory output growth rose 7.1% to 135.1 in April 2022, driven by growth in the capital goods and consumer durables sectors. This is the highest level in 8 months. Growth was also supported by the electricity and manufacturing sectors. It was 2.2% in March a month ago.

Corona adversely impacted economic activities

In April 2021, IIP growth stood at 126.6, up 133.5%. The reason for such high growth was the low base effect. Actually, in March 2020, due to the lockdown imposed due to Corona, economic activities in the country came to a standstill. As a result, the IIP base went down. In April 2020, the IIP fell by 57.31% to 54.0. When the base goes too low, even a little bounce creates the illusion of a big correction.

6.3% growth in manufacturing sector

Manufacturing sector growth rose 6.3% to 132.5 in April. Electricity and mining saw growth of 11.8% (194.5) and 7.8% (116.0). The capital goods sector saw a growth of 14.7%, while the consumer durables sector saw a growth of 8.5%. Slow growth in the non-durables sector with 0.3% remains a cause for concern. This shows that consumers are spending less due to inflation.