Manufacturing grows 6.3% in April, power 11.8%

NEW DELHI: Several indicators had pointed to the recovery gathering momentum, including

PMI

manufacturing surveys and GST receipts. The impact of the war in

Ukraine

and the breakdown in supply chains have triggered stubborn price pressures which will have an impact on growth and the manufacturing sector going forward. But economists were surprised by the resilience of the sector although they pointed to the weak spots that still need to be watched in the manufacturing sector.

The manufacturing sector rose an annual 6. 3% in April, higher than the 1. 4% in March and the electricity sector rose 11. 8% compared to a 6. 1% growth in the previous month.

“When compared with the pre-Covid level of April 2019, the

IIP

was 6. 8% higher in April 2022, with a doubledigit growth in intermediate, infrastructure and primary goods, amidst a flattish performance of consumer non-durables, and an unpalatable contraction in capital goods and consumer durables,” said

Aditi Nayar

, chief economist at ratings agency

ICRA

. She said consumption remains tentative on the whole, with underlying unevenness.