The growth of the industrial production index (IPI) for India accelerated to 7.1% y/y in April 2022, from 2.2% y/y in March. However, the index declined by 9.2% m/m showing a moderation of industrial activity in comparison to the previous month. It is important to check both, due to the low base from April 2021, when India was battling the devastating second wave of COVID-19. The IPI for manufacturing, which occupies more than three-quarters of the total, declined by 8.8% m/m, while its growth accelerated by 6.3% y/y in April. The IPI for mining had a more pronounced contraction of 19.7% m/m, as opposed to a growth of 7.8% y/y. The IPI for electricity, however, grew by 1.8% m/m, and a stellar 11.8% y/y in April.
By type of goods, primary goods production, which occupies the largest weight, recorded a growth of 10.1% y/y in April, the pace of acceleration picking up from the previous month. Over the same period, the production of intermediate goods, which is the second-largest element by weight, grew by 7.6% y/y, marking an even sharper increase in comparison to primary goods, from 1.8% y/y in the previous month. Consumer non-durables' production, which declined for two consecutive months, turned around in April, to grow by 0.3% y/y, marking a 4.9pp improvement. The IPI pertaining to consumer durables grew by 8.5% y/y, making it a larger increase than the non-durables counterpart. The IPI for capital goods also accelerated in April, to grow by 14.7% y/y. The growth in the production of infrastructure and construction goods, on the other hand, decelerated by 2.9pp, to 3.8% y/y.