Finance Min outlines growth in industrial production, consumption, & investment for FY22

The Finance Ministry on Monday informed about sustained growth in industrial production with an increase in the Index of Industrial Production (IIP) in the second quarter of the financial year 2021-22. In the quick estimates regarding the current IIP for the month of September, the Ministry informed that it has grown from an average of 121.3 in the first quarter to 130.2 in the second quarter of the financial year. 

The ministry further informed that the Index of Industrial Production would have been higher in the second quarter, however, it was disrupted due to heavy monsoon rains which affected coal mining, electricity generation, and other activities.

A statement issued by the Ministry of Finance read, "The manufacturing index in IIP has held steady and is likely to rise in subsequent months mirroring the eight-month high in Purchasing Manager’s Index (PMI) for manufacturing reaching 55.9 in October, 2021."

Earlier on Friday, the IIP data which was released by the Ministry of Statistics and Programme Implementation shows India's industrial production growth by 3.1% in September compared to the same month last year. The data further showed that the domestic mining output has also grown in the month by 8.6% followed by the manufacturing sector which has been edged by 2.7%. 

Investment induced due to rising consumption in current fiscal year

In its statement, the Ministry of Finance informed that there are clear signs of a rise in consumption in the current financial year and it is inducing investment. As per that, the consumer durables index has increased from 91.7 in the first quarter to 121.2 in the second quarter followed by the consumer non-durables index which has also moved up from 139.1 to 146.9 across the two quarters. 

Similarly, the numbers of Consumer Price Index (CPI) has also shown a decline in annual consumer price inflation from 5.6% to 5.1% in the second quarter followed by the Consumer Food Price Inflation (CFPI) which has declined from 4.0% to 2.6% and further 0.8% in October. 

Apart from that, exports are also witnessing growth, and are boosting India's economy for the seventh successive month in October followed by its merchandise exports which stood at $232.58 billion. 

Image: PTI