India's Industrial Output Surges 5.7 Per Cent In July, Fastest Growth In Five Months

India's Industrial Output Surges 5.7 Per Cent In July, Fastest Growth In Five Months

by Swarajya Staff - Wednesday, September 13, 2023 11:58 AM IST
India's Industrial Output Surges 5.7 Per Cent In July, Fastest Growth In Five MonthsRepresentative Image (Hemant Mishra/Mint via Getty Images) 

India's industrial output experienced a growth of 5.7 per cent in July, the highest in five months, despite a decline in consumer durables for the second consecutive month.

This growth was driven by an 8 per cent increase in electricity generation, a 10.7 per cent rise in mining output, and a slightly improved manufacturing growth of 4.6 per cent.

The Index of Industrial Production (IIP) growth in June was revised by the National Statistical Office from 3.7 per cent to a slightly higher 3.75 per cent, reports The Hindu.

The last time industrial output grew at a faster pace than July was in February 2023, with a year-on-year increase of 5.8 per cent.

Although July marked a three-month low in terms of absolute production levels, there was a strong growth in infrastructure and construction goods, which saw an 11.4 per cent increase.

This marked the fourth consecutive month of double-digit growth in this sector.

Additionally, electricity generation saw a healthy 8 per cent increase, marking the third successive month of growth after two months of contraction.

Consumer durables' production remained in contraction for the seventh time in eight months, although the rate of decline decreased from 6.9 per cent in June to 2.7 per cent in July.

This segment of the industry is the only one with negative growth, down 2.7 per cent from the previous year, for the first four months of 2023-24.

Consumer demand for non-durables strengthened in July, with a growth of 7.4 per cent in output compared to just 1.2 per cent in June.

The production growth of primary goods also accelerated to 7.6 per cent in July from 5.2 per cent in June.

However, intermediate goods faltered, with a growth of only 1.9 per cent in July compared to 4.5 per cent in June.

Capital goods output, which reflects planned investment activity, recovered in July with a growth of 4.6 per cent, bouncing back from an eight-month low of 2.2 per cent in June.

However, the output levels in absolute terms were at a three-month low and 4.6 per cent below June's production.

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