The Index of Industrial Production (IIP), however, grew by only 0.14% from May 2022 levels.
The Index of Industrial Production (IIP), however, grew by only 0.14% from May 2022 levels.
India’s industrial output grew 12.3 per cent in June from 19.6 per cent this May, led by 16.4 per cent growth in electricity and 12.5 per cent in manufacturing. Mining activity grew 7.5% in the month.
The Index of Industrial Production (IIP), however, rose only 0.14% over May 2022 levels, with manufacturing being the only sector to report a gradual increase in output in June, rising 1.34%.
Consumer durables and capital goods production led the growth trajectory among use-based categories for the second consecutive month, with growth of 26.1 per cent and 23.8%, respectively, in June.
This is the third consecutive month of growth in consumer durables output after a six-month contraction. In contrast, consumer non-sustainable production growth creeped up for the second month in a row, rising only 2.9% in June after rising 0.9% in May.
Production of primary goods grew 13.7%, followed by intermediate goods (11%) and infrastructure/construction goods at 8%. However, these three sectors registered a gradual decline from May’s production levels, with primary goods declining by 3.8%, intermediate goods by 2.9% and construction goods by 2.7%.
ICRA Chief Economist Aditi Nair attributed the broad fall in IIP growth to the effects of ‘normalization base’. Nevertheless, manufacturing growth outpaced the number at 10.2% estimated by the rating agency.
“Given the deceleration in year-on-year performance recorded by most high-frequency indicators such as power generation and non-oil exports in July 2022, we expect IIP growth to decelerate to high single digits,” he added. ”