August 16, 2022
The Index of Industrial Production (IIP) grew by 0.14% compared to May 2021 levels
The production of consumer durables rose by 26.1%, and capital goods by 23.8%, in June
After six months of contraction, this has been the third successive month of output growth for consumer durables
The output of consumer non-durables saw growth for the second month in a row, rising at 2.9% in June after a 0.9% increase in May
India’s industrial output (IIP) increased by 12.3% in June, led by a 16.4% growth in electricity and a 12.5% rise in manufacturing. Industrial output in May stood at 19.6%.
The IIP grew by 0.14% compared to May 2021 levels. The manufacturing sector witnessed a sequential increase in June at 1.34%, and mining activity grew by 7.5% in the month.
The production of consumer durables rose by 26.1%, and capital goods by 23.8%, in June. Both parameters led the growth trajectory among use-based categories for the second month. After six months of contraction, this has been the third successive month of output growth for consumer durables.
The output of consumer non-durables saw growth for the second month in a row, rising at 2.9% in June after a 0.9% increase in May. Output growth for primary goods was at 13.7%, followed by intermediate goods at 11%, and infrastructure/construction items at 8%.
The three sectors, however, have reported a sequential decline from May’s output levels, with primary goods, intermediate goods and construction goods declining by 3.8%, 2.9%, and 2.7%, respectively.
According to experts, the broad-based drop in the IIP growth rate resulted from a ‘normalising base’. However, growth in manufacturing output caused an uptick in the numbers, which was higher than 10.2%.
It is expected that the IIP growth to ease to high single digits due to a moderation in the Year-on-Year (YoY) growth recorded by most high-frequency indicators in July 2022, such as electricity generation and non-oil exports.