India’s industrial production index growth slowed to 0.4% y/y in December 2021
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.
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.
Further data and analysis on India’s economy are available on the CEIC India Economy in a Snapshot – Q4 2021 report.