India’s industrial production index growth slowed to 0.4% y/y in December 2021

This marks the fourth consecutive slowdown in the index
This marks the fourth consecutive slowdown in the index
This marks the fourth consecutive slowdown in the index

The industrial production index recorded a growth of 0.4% y/y in December 2021, marking the fourth consecutive slowdown in the index, driven primarily by a sustained deceleration in manufacturing production over the same period. The industrial production index pertaining to manufacturing declined by 0.1% y/y in December, mirroring the subdued demand conditions in the country, which was exacerbated by the third wave of COVID-19. The growth in electricity production accelerated to 2.9% y/y in December from 2.1% y/y in November, while that for mining slowed to 2.6% y/y, by 2.3pp over the same period. 
 

This marks the fourth consecutive slowdown in the index

By type of goods, the decline in production of consumer durables narrowed to 2.7% y/y in December 2021, after worsening to 5.4% y/y in November 2021. On the other hand, the decline in production of capital goods intensified to 4.6% y/y by 2.6pp over the same time frame. The production of intermediate goods growth slowed to 0.3% y/y, and that for infrastructure and construction goods growth slowed to 1.7% y/y. The component of consumer non-durables declined by 0.6% y/y, recording a drop of 1.1pp.

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Further data and analysis on India’s economy are available on the CEIC India Economy in a Snapshot – Q4 2021 report.

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14th February 2022 India’s industrial production index growth slowed to 0.4% y/y in December 2021