October 13, 2023
The manufacturing sector saw a substantial growth of 9.3% in August 2023
The mining sector recorded a substantial growth of 12.3%
Infrastructure and construction goods posted a substantial growth rate of 14.9%
Consumer non-durable goods output showed an impressive increase of 9%
India’s industrial production surged to a 14-month high in August 2023, achieving a growth rate of 10.3%, according to a government report. This robust expansion can be primarily attributed to outstanding performances in the manufacturing, mining, and power sectors.
For context, in August 2022, the Index of Industrial Production (IIP) had experienced a contraction of 0.7%. The previous peak was reached in June 2022 with a growth rate of 12.6%. Notably, the IIP growth for July was revised to 6% from the initial estimate of 5.7% released last month.
However, the cumulative IIP growth from April to August 2023-24 stands at 6.1%, marking a decline from the 7.7% recorded during the corresponding period in the previous year.
Breaking down the sectoral performance, the manufacturing sector saw a substantial growth of 9.3% in August 2023, significantly improving from the 0.5% contraction observed a year ago. Power generation also displayed a remarkable increase, soaring by 15.3% in August 2023, compared to a mere 1.4% during the same period in the previous year. Meanwhile, the mining sector recorded a substantial growth of 12.3% during the same month, in stark contrast to the 3.9% contraction experienced a year ago.
Regarding use-based classification, the capital goods segment experienced substantial growth, with a notable 12.6% increase in August this year compared to the 4.3% recorded previously. On the other hand, consumer durables output witnessed a decline of 5.7%, a drop from the 4.4% contraction seen in the year-ago period. Consumer non-durable goods output, however, showed an impressive increase of 9%, reversing the 9% contraction from the previous year. Additionally, infrastructure and construction goods posted a substantial growth rate of 14.9%, compared to the 3% expansion a year ago.
The data also indicated significant growth in the output of primary goods, which logged an impressive 12.4% growth in the month, a substantial improvement from the 1.7% recorded in the year-ago period. Furthermore, intermediate goods output in August rose by 6.5%, a considerable increase from the 1.3% growth recorded during the corresponding month in the previous year.
Source: Times of India