As developed economies face a slowdown, India has been focusing on growth and has also defied the global trend of raising interest rates. As part of the Union Budget 2023, the capital expenditure was also raised by 37 per cent to Rs 10 lakh crore, to boost industrial growth.
This approach has produced results including a 5.6 per cent rise in industrial output for February, as compared to 5.5 per cent in January.
Indutrial growth on track
The Index of Industrial Production pegged the growth in output at 5.5 per cent for first 11 months of FY23, as compared to 12.5 per cent in the same period of FY22.
The data for February released by the Ministry of Statistics and Programme implementation, is also close to the expectation of 5.8 per cent.
For January, the growth had been recorded at 5.2 per cent before being revised to 5.5 per cent.
Manufacturing and power generation lead the way
While the manufacturing sector clocked 5.3 per cent growth, mining operations delivered 4.6 per cent higher output, and 8.2 per cent more power was produced.
The rise in manufacturing, also reflects the consistent economic activity across India despite global headwinds.
The industrial growth data comes at a time when the Reserve Bank of India has forecast a 6.5 per cent growth ofr the country's economy in FY24.