IIP Growth In December Slows Down In December To 0.4%

As per the latest data released by the ministry of Statistics and Programme Implementation (MoSPI), the country's industrial production slowed to 0.4% in December month. Industrial Production as computed by IIP increased 2.2% in the same month last year and 1.4% in November 2021.

IIP Growth In December Slows Down In December To 0.4%

Industrial production has been facing disruption due to the coronavirus pandemic since March 2020, when it had contracted 18.7%. There has been reported a slowdown in manufacturing with the sector witnessing contraction in activity as against a rise by 0.8% in the earlier month.

" The Industrial production data has been falling for three consecutive months now. The production data at near-zero percentage level coupled with rising inflation is a cause of concern, though the RBI has been clearly focusing on growth over inflation.

Most of the components have been on a downward spiral primarily manufacturing, electricity, capital, consumer durables, and intermediate goods. For an economy to rise, it is important that the manufacturing perform. The manufacturing segment also helps create huge employment opportunities. Slowing industrial growth is concerning even as the government and the central bank have been ensuring ample liquidity for businesses and well large industries", views as expressed by Mr. Nish Bhatt, Founder & CEO, Millwood Kane International - an Investment consulting firm.

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