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India's Industrial Boom: 7.8% Growth in December
28 Jan
Summary
- Industrial production grew by 7.8% in December, the fastest pace in two years.
- Manufacturing, mining, and electricity sectors showed strong growth contributing to the surge.
- December's growth was more than double the 3.7% expansion seen in the previous year.
India's industrial production demonstrated remarkable strength in December, registering a 7.8% expansion, the highest in two years. This impressive growth was propelled by significant advancements in the manufacturing, mining, and electricity generation sectors.
Specifically, the manufacturing sector grew by 8.1%, with mining output increasing by 6.8%, and electricity generation rebounding to a 6.3% growth. These figures represent a substantial improvement compared to the previous year's figures and November's revised 7.2% expansion, signaling robust economic momentum.
The positive trend extended to capital goods, infrastructure, and consumer goods. Infrastructure goods output saw a 12.1% expansion, while consumer durables, including automobiles and electronics, grew by 12.3%. Consumer non-durables also recovered strongly with an 8.3% growth.
Despite this strong performance, experts note that capacity utilization remains around 75%, which may not be sufficient to trigger substantial new private investments. Global economic factors, such as surplus production capacity in China, are also seen as potential drags on investment.
