By Nikunj Ohri and Shivangi Acharya
NEW DELHI (Reuters) – India’s industrial output rose 4.2% year-on-year in April, data from the Ministry of Statistics showed on Monday.
Analysts in a Reuters poll had forecast an expansion of 1.8%. In March, output growth was revised to 1.7% from 1.1%.
Manufacturing, which accounts for about 17% of the Indian economy, rose 4.9% year-on-year in April compared with a provisional 0.5% year-on-year growth reported in March.
Electricity generation during April fell 1.1% over the same period a year earlier, while mining activities increased 5.1%, the data showed.
In the month of March, electricity generation provisionally fell 1.6%, while mining activities provisionally increased 6.8%.
Consumer durables fell 3.5% year-on-year in April, after a decline of 8.4% in the previous month.
“Negative growth for consumer durables is surprising given this is post-Rabi harvest season when demand typically picks up,” said Madan Sabnavis, economist at Bank of Baroda.
Infrastructure or construction goods grew 12.8% year-on-year in April, while consumer non-durables showed a growth of 10.7% as compared to last year. Capital goods grew 6.2% year-on-year during the month.
Performance of key economic indicators in May improved over the previous month, said Aditi Nayar, economist at ICRA, in an email. She said industrial production growth should range between 4% and 6% in May.
(This story has been corrected after an official revision by the ICRA to change the name of the economist quoted in paragraph 9)
(Reporting by Nikunj Ohri and Shivangi Acharya; editing by Philippa Fletcher and Toby Chopra)
