India’s industrial output growth hits a 4-month high of 7% in June
11 Aug 2018
India’s industrial production, based on the index of industrial production (IIP) grew at an annual pace of 7 per cent in June, the highest in four months, benefiting from a low base of last year when manufacturing activity slowed as dealers cut stock and put fresh orders on hold ahead of the goods and services tax rollout.
The index of industrial production rose 7 per cent year-on-year in June, against a 0.3 per cent decline in June last year, preliminary data released on Friday showed.
Mining output rose 6.6 per cent compared with a 0.1 per cent growth in June last year. Manufacturing output improved 6.9 per cent compared with a decline of 0.7 per cent. Electricity generation growth stood at 8.5 percent compared to 2.1 percent last year.
Nineteen out of the 23 industry groups in the manufacturing sector recorded positive growth in June. Manufacturing of computer, electronic and optical products recorded the highest pace of growth of 44 per cent in June 2018, followed by manufacturing of motor vehicles, trailers and semi-trailers at 20.5 per cent.
Production of primary goods rose 9.3 per cent, while capital goods production increased 9.6 per cent. Output of intermediate goods, which had been acting as a drag on the overall IIP, improved slightly growing at 2.4 per cent.
Production of consumer durables rose 13.1 per cent while that of non- durables grew 0.5 per cent year-on-year.
Production in the infrastructure goods sector rose 8.5 per cent in June 2018.