India’s factory output growth surged to more than 7 per cent in April on the back of growth in capital goods and consumer durables sector.
Capital goods sector surged by 14.7 per cent in April while the consumer durables sector rose by 8.5 per cent compared to same period last year.
The tepid growth in non-durable sector remains a cause for concern. It remained almost flat at 0.3 per cent showing that the consumers are wary to spend amid high inflation.
NSO further said the primary goods, intermediate goods, infrastructure/ construction goods, and consumer non-durables sectors expanded by 10.1 per cent, 7.6 per cent, 3.8 per cent, and 0.3 per cent, respectively.
The manufacturing sector reported a growth of 6.8 per cent while electricity and mining showed an increase of 11.8 and 7.8 per cent respectively.
India’s economy entered the FY23 fiscal with a host of macroeconomic challenges. Inflation risks and tightening interest rates are likely to slow down the economy as the RBI and government act to tame rising prices.