India's industrial output up 4.9% y/y in March

A view of the supply management company Prozo's distribution warehouse near Gurugram,

By Nikunj Ohri

NEW DELHI (Reuters) -India's industrial output in March rose a weaker than expected 4.9% year-on-year amid slower growth in mining activity, government data showed on Friday.

Economists polled by Reuters had expected industrial output to rise 5.1%. Industrial output rose 1.9% in the same month a year ago.

Industrial output growth for February was revised down to 5.6% from 5.7%.

Manufacturing output in March rose 5.2% year-on-year, faster than 1.5% in the same month the previous year.

Mining activity increased 1.2%, compared with a 6.8% rise in the same month a year earlier, the data showed.

Electricity generation in March was up 8.6%, against a fall of 1.6% in the corresponding month a year earlier.

Industrial output in the fiscal year that ended March was up 5.8%, against a 5.2% rise in the same period a year earlier.

Output of consumer durables, such as automobiles, fridges and washing machines, increased 9.5% year-on-year in March against an 8% fall in March 2023.

Consumer non-durables increased 4.9% year on year, against a decline of 1.9% in the same month last year.

Growth in consumer durables and non-durables should be sustained as the winter sown crop is expected to be good "and along with the wedding season should fuel spending in April and May," said Madan Sabnavis, an economist at Bank of Baroda.

Production of infrastructure goods rose 6.9% year on year against 7.2% growth in the same month last year. Capital goods expanded at 6.1% versus an 10% increase a year ago.

(Reporting by Nikunj Ohri; Editing by Jason Neely and Mark Potter)