India’s industrial output surged 5.7 per cent in July, up from 3.7 per cent in June 2023, according to data released by the Ministry of Statistics and Programme Implementation (MoSPI) on Tuesday. Factory output measured in terms of Index of Industrial Production (IIP) for July 2022 stood at 2.2 per cent.
The mining output for July 2023 rose to 10.7 per cent, up from -3.3 per cent in the year ago period.
The official data also showed that electricity output for the said month registered a growth of 8 per cent as against 2.3 per cent in July 2022.
As per use-based classification, the capital goods segment grew 4.6 per cent in July this year compared to 5.1 per cent a year ago.
Consumer durables output during the month declined by 2.7 per cent remaining same as in the year-ago period. However, consumer non-durables output grew by 7.4 per cent.
Infrastructure/construction goods posted a growth of 11.4 per cent over 4.8 per cent expansion in the same period a year ago.
The data also showed that the output of primary goods logged 7.6 per cent growth in the month against 2.5 per cent in the year-ago period.
The intermediate goods output in July rose 1.9 per cent compared to a 3.7 per cent growth during the corresponding month last year.
During the April-July period of fiscal 2023-24, the growth in IIP works out to be 4.8 per cent, down from 10.0 per cent in the corresponding period a year ago.
Industrial production at 5.7% on-year in July was broadly in line with expectations. Manufacturing, with 77.6% weight in industrial production, improved to 4.6% from 3.1% previous month, said Dharmakirti Joshi, Chief Economist, CRISIL.
He also said, "Purchasing Managers Index (PMI) for manufacturing at a 3-month high of 58.6 in August, points towards improved prospects for IIP growth. We believe that the strength of industrial production in the coming months will be tested by the external environment as the global slowdown is expected to intensify in the second half of the year."
"India’s merchandise exports have been contracting for last six months and will remain weak in the rest of the fiscal. This will spill over to the manufacturing sectors that cater to export demand. Domestic demand will, therefore, remain the key driver of industrial performance in rest of the fiscal," he added.
Source Name : Economic Times