Economic news

India's Apr Industrial Output Grows 4.9% in 1st Print of new Data Series

NEW DELHI, June 1 (Reuters) - India's industrial output stood at 4.9% in April, government data showed on Monday, as surging energy costs and supply disruptions ​from the months-long Iran war weighed on parts of Asia's third-largest ‌economy.

The data was the first under a revised series with 2022-23 as the base year. As a result, the latest print cannot be compared with the 4.1% growth in March.

Economists ​polled by Reuters had expected industrial output to grow by 3.9%.

The April ​reading is the second since the Iran war broke out at ⁠the end of February, sparking energy shortages in the world's third‑largest crude importer ​and consumer.

Manufacturing, which accounts for about 13% of the Indian economy and has ​been among the sectors hardest hit by the Middle East crisis, grew 6.2% in April.

Capital goods production, a proxy for factory output, rose 16% year-on-year in April.

Output of consumer durables, such ​as cars and mobile phones, grew 4.3% year-on-year in April, while output ​of consumer non-durables, such as food items and toiletries, rose 2.8% from a year earlier.

Electricity generation ‌rose ⁠4.9% year-on-year in April, while mining activity decreased 5.1% year-on-year during the month.

KEY CHANGES UNDER NEW SERIES

The statistics ministry has used a so-called chain-linked approach, which will allow it to update weights of different index components annually to capture changes in ​the economy and ​reduce distortions.

Under the ⁠new data series, electricity generation has been split into renewable and non-renewable to reflect India's energy transition. Minor minerals and ​rare earths have been added to the index to reflect ​their growing ⁠role in infrastructure, clean energy and high-technology manufacturing.

Gas distribution, water supply, sewerage and waste management activities have also been included, bringing India's industrial statistics closer to global ⁠standards.

Other changes ​to the index include a framework for replacing ​closed or outdated factories with newer production units and a list of miscellaneous items for emerging ​products and specialised industries.

Reporting by Shubham Batra in New Delhi; Editing by Mrigank Dhaniwala

Source: Reuters


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