New Delhi, March 12
Bringing cheer on an otherwise disturbed industrial scene, India\'s factory output in January gained momentum rising 2.6 percent against a 1.1 percent increase during the corresponding month of 2014, coupled with retail inflation slowing at 5.37 percent in February against 7.88 percent in the like month of last year.

Official data on Index for Industrial Production (IIP) showed that the rise in the total factory output was mainly led by a 3.3-percent expansion in manufacturing, as also 2.7 percent in electricity, even as mining activity declined 2.7 percent.

The data on Consumer Price Index (CPI), which measures retail inflation, showed a rise of 4.95 percent in the urban areas and a bit more at 5.79 percent in the rural segment, to take the combined figure to 5.37 percent in February.

The CPI was, however, marginally higher when compared to the figure of 5.19 percent for January 2015. The February food inflation stood at 6.79 percent.

As per final CPI inflation rate figures for January 2015 furnished by the Central Statistics Office (CSO), the CPI urban for January stood at 4.96 percent and rural at 5.34 percent. January food inflation stood at 6.14 percent.

Meanwhile, there was a massive increase in January 2015 IIP which was up 2.6 percent from a growth of 1.7 percent during December 2014. In November 2014, the IIP had increased by 3.8 percent, while in October it decelerated by 4.2 percent.

The cumulative growth of IIP for April-January 2014-15 stood at 2.5 percent while the figure for the corresponding period of the previous fiscal stood at 0.1 percent.

Manufacturing of basic and capital goods showed growth during the month under review. However, production of intermediate goods fell. Production of basic goods grew by 4.5 percent, while capital goods production was up 12.8 percent, though intermediate goods declined by 0.8 percent.

The production of consumer durables and consumer non-durables plunged. The production of consumer durables was down 5.3 percent, while consumer non-durables segment marginally went down by 0.1 percent in the month under review.

The overall consumer goods segment was down 1.9 percent.

Overall, 14 out of the 22 industry groups in the manufacturing sector have shown positive growth during the month under review.

Segment-wise, high positive growth was reported in boilers (20.8 percent), room air conditioners (23.4 percent), rice (25.6 percent), carbon steel (29.4 percent), cable, rubber insulated (39.5 percent), PVC pipes and tubes (41.0 percent), plastic machinery including moulding machinery (41.1 percent), gems and jewellery (44.4 percent) and stainless/alloy steel (68.5 percent).

Segment-wise, high negative growth was reported in colour TV sets (-20.6 percent), wooden furniture (-22.7 percent), generator/alternator (- 23.4 percent), steel structures (-34.2 percent), computers (-39.7 percent), tractors (-40.6 percent), ship building and repairs (-42 percent) and telephone instruments, including mobile phones and accessories (-57.9 percent).

India Inc. welcomed the uptick in industrial production and said that the happy augury which would set the pace for further growth during the course of the year.

\"What is heartening is the impressive performance of the capital goods sector which has notched up double digit growth in January, indicating a pick-up in investments during the month backed by improved sentiment and government action,\" said Chandrajit Banerjee, director general, Confederation of Indian Industry (CII).

\"We hope that going forward, industrial growth would firm up further as both the government and the RBI are working in sync to realise the objective of higher growth and moderate inflation,\" Banerjee said.

He added that the marginal uptick in CPI inflation over the previous month should not dissuade the RBI (Reserve Bank of India) from continuing with its rate easing cycle to support growth in the forthcoming monetary policy announcement in April.

Other industry body Federation of Indian Chambers of Commerce and Industry (FICCI) said that it was encouraging to see positive growth in manufacturing for the last three months.

\"We hope this growth momentum to continue. The announcements made in the budget, cuts in the repo rate announced by RBI and number of other initiatives taken by the government in the last few months to improve business sentiments are likely to push growth and investments in the industrial sector in coming months,â€ said Arbind Prasad, director general, FICCI.

India\'s factory output up, retail inflation slows