India's industrial production rose to 5.2 per cent in May from 4.5 per cent in April 2023, mainly due to good performance by the manufacturing and mining sectors, according to the official data released on Wednesday.
The factory output growth measured in terms of the Index of Industrial Production (IIP) stood at 19.7 per cent in May 2022, mainly due to a lower base effect.
"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 explained.
As per the IIP data released by the National Statistical Office (NSO), the manufacturing sector's output grew 5.7 per cent in May 2023 against a 20.7 per cent expansion a year ago.
Power generation rose 0.9 per cent in May 2023 compared to a growth of 23.5 per cent a year ago.
Mining output rose by 6.4 per cent during the month under review against an 11.2 per cent expansion in the year-ago period.
"Indian economic activity has been recovering; however, it has not been uniform," said : Debopam Chaudhuri, Chief Economist, Piramal Enterprises.
"One of the major bottlenecks preventing growth required to meet India’s true potential is the availability of capital to the furthest corner of the economy. Improved financial inclusion, deeper debt markets and higher participation by capital owners, including provident and pension funds, is necessary to revive the private capex cycle, especially across MSMEs which account for more than 30% of the economy," he added.
As per use-based classification, the capital goods segment grew 8.2 per cent in May this year compared to 53.3 per cent a year ago.
Consumer durables output during the month rose 1.1 per cent against a 59.1 per cent growth in the year-ago period.
Consumer non-durable goods output increased by 7.6 per cent compared to a growth of 1.4 per cent a year earlier.
Infrastructure/construction goods posted a growth of 14 per cent over an 18.4 per cent expansion in the same period a year ago.
The data also showed that the output of primary goods logged 3.5 per cent growth in the month against 17.8 per cent in the year-ago period.
The intermediate goods output in May rose 1.6 per cent compared to a 17.5 per cent growth during the corresponding month last year.
During the April-May period of fiscal 2023-24, the growth in IIP works out to be 4.8 per cent, down from 12.9 per cent in the corresponding period a year ago.
Source Name : Economic Times