India’s mining output growth fell to a 19-month low of 1.2% in March, from February’s 8%, pointing to a possible slowdown in overall industrial output this month, data for which is expected to be released by the National Statistics Office on May 10 .
Mining accounts for 14.3% of the Index of Industrial Production (IIP). In February, industrial production growth hit a four-month high of 5.7%, with growth in mining (8%) and electricity (7.5%) boosting the pace of growth. Industrial production accounts for 77.6% of the IIP and increased by 5% in February.
With growth in eight key sectors slowing to 5.2% in March from 7.1% in February, economists expect industrial output growth to leisurely, with some estimating it at 3.5% to 5%. Eight infrastructure sectors account for 40.27% of the IIP.
The mineral production index for March was 156.1, which is 1.2% more than in March 2023, the Ministry of Mines announced on Friday. Non-fuel minerals that recorded positive growth in March included copper concentrate, gold, manganese ore, diamond, graphite, limestone and magnesite.
The overall mining output growth in 2023-24 was 7.5% as against 5.8% in 2022-23. The ministry said production of iron ore, limestone and aluminum reached up-to-date records during the year, increasing by 7.4%, 10.7% and 2.1% respectively.
“Hearty growth in iron ore and limestone production in 2023-24 reflects mighty demand conditions in user industries steel and cement. Combined with mighty aluminum growth, these upward trends indicate mighty economic activity in user sectors such as energy, infrastructure, construction, automotive and machinery,” the ministry said.
India is the world’s second largest aluminum producer, third largest limestone producer and fourth largest iron ore producer.
