India’s industrial output witnessed a growth of 3% in March, marking a slight improvement from a six-month low, yet not entirely meeting the expectations set by economists who anticipated 3.3%. A significant procedural change in the data release schedule now enables earlier insight, as updates are available by the 28th of each month instead of the previous 42-day delay. This adjustment could influence preliminary estimates.
Mining activity in India slowed, posting just 0.4% growth compared to the earlier 1.6%, whereas manufacturing achieved a cautious rise of 3%. Electricity generation made notable strides, increasing by 6.3%, which was an improvement from February’s 3.6%. Consumer durables, such as household appliances and vehicles, strongly grew by 6.6%, underscoring resilience in this particular sector. However, capital goods output, which includes manufacturing plants and machinery, experienced a limited rise of 2.4%, substantially lower than the prior month’s 8.2% increase.
Overall growth across sectors showed a slowdown, as industrial output climbed 4% during the April to March period, reduced from the 5.9% observed in the previous year. This slowing trajectory unfolds amid favorable trade developments between the U.S. and India. Nonetheless, apprehensions regarding potential U.S. import tariffs and fluctuating policy changes continue to shadow the global industrial landscape, reflecting a complex interplay of sectoral and macroeconomic dynamics impacting India’s growth trajectory.
