High growth of consumer durables, capital goods encouraging: Industry on IIP data

New Delhi, May 10 (IANS) High growth of consumer durables at 9.5 per cent and capital goods at 6.1 per cent indicates expansion of investment trajectory in the country, industry experts said on Friday after the release of the Index of Industrial Production (IIP) data.

The IIP registered a 4.9 per cent growth in March this year over the same month of the previous year, according to the Ministry of Statistics.

Sanjeev Agrawal, President, PHD Chamber of Commerce and Industry, said that the industry appreciates the high growth in capital goods at 6.1 per cent in the IIP data.

"We look forward to the growth trajectory of the Indian economy remaining on the high road in 2024-25 too," he added.

The production of consumer durables such as refrigerators, washing machines, and TVs logged a robust increase during March, reflecting the increase in consumer demand that stems from rising incomes and jobs.

ICRA Chief Economist Aditi Nayar said the year-on-year growth in a majority of the available high-frequency indicators witnessed an uptick in April 2024 as compared to March.

"This subset includes vehicle registrations, generation of GST e-way bills, petrol sales, output of Coal India Limited and electricity generation," she said.

The IIP growth was led by a robust expansion in electricity, with demand boosted by rising temperatures, and dampened by a feeble rise in mining output, the ICRA economist added.