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Key Points

India's industrial output showed modest growth at 1.5% in June, primarily driven by a strong 3.9% expansion in manufacturing. The capital goods sector grew by 3.5%, signaling positive investment trends in the economy. However, the mining and electricity sectors dragged down overall performance with significant contractions. Consumer durables and infrastructure sectors also showed healthy growth during the month.

Key Points: India's Industrial Production Grows 1.5% in June Led by Manufacturing

  • Manufacturing sector grows 3.9% with 15 out of 23 industries showing positive growth
  • Basic metals and fabricated metal products lead manufacturing growth at 9.6% and 15.2%
  • Capital goods production rises 3.5% indicating economic investment momentum
  • Mining and electricity sectors contract by 8.7% and 2.6% respectively
2 min read

India's industrial production clocks 1.5 per cent growth in June

India's IIP rises to 1.5% in June as manufacturing grows 3.9%, though mining and power sectors drag overall performance

"The manufacturing sector registered a 3.9% growth in June - Ministry of Statistics"

New Delhi, July 28

India’s industrial growth, based on the Index of Industrial Production (IIP), recorded a 1.5 per cent growth in June this year, driven by a stronger performance in the manufacturing sector, according to data released by the Ministry of Statistics on Monday.

The data showed that the manufacturing sector, which provides quality jobs for the young graduates passing out of the country’s universities and engineering institutes, registered a 3.9 per cent growth in June this year over the same month of the previous year.

The overall index of industrial production during June was higher than the 1.2 per cent registered in the preceding month of May.

Within the manufacturing sector, 15 out of 23 industry groups recorded a positive growth in June over the same moth of the previous year. The top three positive contributors for the month are – “Manufacture of basic metals” (9.6 per cent), “Manufacture of coke and refined petroleum products” (4.2 per cent) and “Manufacture of fabricated metal products, except machinery and equipment” (15.2 per cent), according to the official statement.

In the industry group “Manufacture of basic metals”, item groups “MS slabs”, “HR coils and sheets of mild steel” and “Pipes and tubes of Steel” have shown significant contribution in growth.

The figures on use-based classification show that the production of capital goods, which comprise machines used in factories, went up by robust 3.5 per cent in June. This segment reflects the real investment taking place in the economy which has a multiplier effect on the creation of jobs and incomes going ahead.

The production of consumer durables such as refrigerators, air conditioners and TV sets increased by 2. 9 per cent during the month, reflecting the rise in demand for these products with a rise in incomes.

The infrastructure and construction sector clocked a growth of 7.9 per cent on the back of big ticket government projects being implemented in the highways, railways and ports sectors.

However, electricity generation declined by (-) 2.6 per cent and the mining sector proved to be a laggard with an (-) 8.7 per cent contraction in output during the month. This negative growth in the mining and power sectors weighed on the positive performance of the manufacturing sector.

- IANS

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Reader Comments

P
Priya S
While the numbers look positive, I'm concerned about the 8.7% decline in mining. We can't have sustainable industrial growth without addressing our energy and raw material challenges. The government needs to focus on this aspect too.
R
Rohit P
7.9% growth in infrastructure is fantastic! The new highways and port projects are visible everywhere. My cousin got a job in a steel plant thanks to these developments. More power to Make in India initiative 🇮🇳
S
Sarah B
Interesting to see consumer durables growing at 2.9%. Shows middle class spending is recovering post-pandemic. But I wonder how much of this is urban vs rural growth? Would love to see that breakdown.
K
Karthik V
The capital goods growth at 3.5% is the real story here! This means industries are investing in new machinery - a sign they're preparing for future demand. Smart move by businesses anticipating economic recovery.
M
Meera T
As someone working in manufacturing sector, I can confirm the positive sentiment on ground. Our factory has been running extra shifts since April. But electricity issues are a constant headache - explains the -2.6% in power generation.

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