India’s Production Growth in Industry Recovers to 5.2% in January

Current context: The industrial growth or the production growth went from 4.7% in December to a two-month high of 5.2% in January. The growth predictions are according to data given by Index of Industrial Production (IIP) which is released by National Statistical Office (NSO).

• The electricity output has increased to 12.7% and manufacturing unit has recovered to 3.7%.
• Mining sector has reduced to 8.8% from 9.8% previous month.
• The Index of Industrial Production in FY23 in the initial 10 months has seen an increase of 5.4%. Previous year data was 13.7%.
• Out of 23 manufacturing sectors, 10 sectors including tobacco, textiles, wood, computers, furniture etc has seen a reduction of growth in January.
• CARE ratings predicted that the export items such as textile has witnessed reduce in production whereas the output of consumer used goods has seen a positive response for the 3rd consecutive month.
• Chief economist of Bank of Baroda said that production linked incentive (PLI) has affected the export sector which has led to low manufacturing growth.
• Computers or electronics has witnessed a reduction of 29.6% this month. This sector was the most benefitted from PLI scheme.
• Infrastructure materials and other goods grew by 8.1% and 10.95% respectively.
• Fast moving consumer goods have experienced a reduction of 7.5% for a second month in a row.
• IIP in year-on-year growth is said to be 3-5% in February 2023.
• According to the data released by Ministry of Statistics and Programme Implementation on IIP for FY23, the economy grew by 4.4%.

Question:

Q.1 Which sector was the most benefitted from PLI scheme?
a. Infrastructure
b. Electricity
c. Computer/electronics
d. Mining