Economy
June Sees Industrial Production Growth Drop To Three-Month Low Of 3.7 Per Cent
Representative picture for the industry
India's industrial production growth in June reached a three-month low of 3.7 per cent, primarily due to a weak performance by the manufacturing sector, as revealed through official data released on Friday (11 August).
The Index of Industrial Production (IIP), which measures factory output growth, had a growth rate of 12.6 per cent in June 2022, mainly due to the lower base effect.
In March 2023, the IIP reached its previous low of 1.9 per cent. However, it then increased to 4.5 per cent in April and further to 5.3 per cent in May.
For the first quarter (April-June) of 2023-24, the IIP growth rate was 4.5 per cent, a significant decrease from 12.9 in the same period a year ago.
“The growth rates over corresponding period of previous year are to be interpreted considering the unusual circumstances on account of COVID 19 pandemic since March 2020,” an official statement said.
In June 2023, the manufacturing sector witnessed a 3.1 per cent increase in output, against 12.9 per cent a year ago, according to data released by the National Statistical Office (NSO).
The capital goods segment grew 2.2 per cent in June this year compared to 28.6 per cent a year ago, going by the use-based classification.
During the month, consumer durables output declined by 6.9 per cent, a significant drop from the 25.2 per cent growth seen in the same period last year.
On the other hand, consumer non-durable goods output increased by 1.2 per cent, a slight decrease from the 2.9 per cent growth seen a year earlier.
Infrastructure/construction goods saw a growth of 11.3 per cent, surpassing the 9.4 per cent expansion seen in the same period a year ago.
The production of primary goods increased by 5.2 per cent in the current month, compared to a growth of 13.8 per cent in the same period last year.
In June, the output of intermediate goods saw a 4.5 per cent increase, whereas it had grown by 10.5 per cent during the corresponding month in the previous year.
