India’s industrial production up 5.7% in July

India's industrial production increased by 5.7 per cent in July, according to official data released on Wednesday. This is the fastest rate of growth in industrial production after the 5.8 per cent growth recorded in February 2023.

As per quick estimates, the Index of Industrial Production (IIP), with base 2011-12, for July 2023 stood at 142. 

In absolute terms, however, July’s production levels stood at a three-month low and were 1.04 per cent lower than in June. 

While production of consumer durables saw the second successive month of contraction in July consumer durables, other sectors like electricity generation (8 per cent), mining (10.7 per cent) and manufacturing (4.6 per cent) saw healthier growth.

Data released by the National Statistics Office showed that the Index of Industrial Production (IIP) growth, projected at a three-month low of 3.7 per cent in June, had grown at a slightly faster rate of 3.75 per cent. 

Infrastructure and construction goods continued to record sharp growth, rising 11.4 per cent in July, the fourth consecutive month of double-digit growth. The 8 per cent rise in electricity generation was also the third successive month of growth.

Consumer durables’ production was down 2.7 per cent in July 2023, although the level of contraction was lower compared to the 6.9 per cent fall in June.

Consumer non-durables production saw a 7.4 per cent growth in July 2023 against the 1.2 per cent growth in June. Primary goods’ production growth accelerated to 7.6 per cent in July from 5.2 per cent in June, while growth of production of intermediate goods declined to 1.9 per cent from 4.5 per cent.

Capital goods production rose 4.6 per cent in July 2023 from 2.2 per cent in June, although output level in absolute terms was 4.6 per cent compared to June

Manufacturing sector, including electronics and textiles, continue to underperform due to export woes.

Along with the quick estimates of IIP for July 2023, the indices for June 2023 have undergone the first revision and those for April 2023 have undergone final revision in the light of the updated data received from the source agencies.