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Key Points

India's industrial production has shown remarkable resilience with a significant seven-month high growth rate in August. The mining and electricity sectors have demonstrated strong recovery, with manufacturing also displaying positive momentum. Key industry segments like basic metals and motor vehicles are driving the expansion, reflecting underlying economic strength. Experts are optimistic about sustained growth and potential economic revival in the coming months.

Key Points: IIP Growth Signals Strong Infrastructure and Primary Goods Surge

  • Mining sector rebounds with 6% growth in August
  • Manufacturing shows positive trend with 3.8% expansion
  • Basic metals and motor vehicles lead industrial growth
  • Infrastructure and capital goods rise impressively by 10.6%
2 min read

Use-based IIP trends reflect strong growth in infrastructure and primary goods: Industry leaders

India's industrial production hits seven-month high with robust growth in mining, electricity, and manufacturing sectors driven by key infrastructure developments.

"The policy is likely to catalyse consumption while promoting sustainable growth - Dr. Ranjeet Mehta, PHDCCI"

New Delhi, Sep 29

India's index of industrial production (IIP) in August showed strong growth in infrastructure and primary goods, experts said on Monday, highlighting a steady recovery in the mining, electricity, and capital-intensive sectors.

According to Hemant Jain, President of PHD Chamber of Commerce and Industry (PHDCCI), IIP grew at 4 per cent in August -- marking a seven-month high, driven by strong recovery in the mining and electricity sectors.

The mining sector grew 6 per cent in August, rebounding from a negative 7.2 per cent in July, he said.

Electricity production also picked up sharply, rising 4.1 per cent compared with just 0.6 per cent in the previous month.

The manufacturing sector grew 3.8 per cent, with 10 out of 23 industry groups at the NIC 2-digit level showing positive performance.

Within the manufacturing sector, 10 out of 23 industry groups recorded a positive growth in August this year compared to the same month of the previous year.

The top contributors were the "basic metals" segment which recorded a robust double digit at growth of 12.2 per cent and "motor vehicles, trailers and semi-trailers" which reported a healthy growth of 9.8 per cent.

"Among these, basic metals, electrical equipment, and other transport equipment industries recorded double-digit growth," Jain added.

Use-based data revealed that consumer durables expanded by 5.2 per cent in August, recovering from negative growth in July, while infrastructure and capital goods rose an impressive 10.6 per cent.

These trends indicate a strong focus on investment-driven and primary goods sectors, even as consumer demand remains comparatively softer.

Dr. Ranjeet Mehta, Secretary General and CEO of PHDCCI, said the recent GST 2.0 reforms are expected to support a balance between investment and demand revival.

"The policy is likely to catalyse consumption while promoting sustainable growth," he noted.

Experts believe that the strong momentum in infrastructure and primary goods provides a solid foundation for India's industrial growth, signalling optimism for broader economic expansion in the coming months.

- IANS

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Reader Comments

R
Rohit P
While infrastructure growth is good, I'm concerned about the consumer demand side. Only 5.2% growth in durables shows common people are still cautious with spending. Hope GST 2.0 brings some relief to middle-class families.
A
Arjun K
The 12.2% growth in basic metals and 9.8% in automobile sector indicates strong industrial demand. This should create more jobs in manufacturing hubs like Gujarat, Maharashtra, and Tamil Nadu. Good for our youth employment!
S
Sarah B
As someone working in the power sector, the electricity production growth from 0.6% to 4.1% is crucial. Better power availability means industries can run at full capacity without interruptions. This is foundational growth.
V
Vikram M
The data shows 10 out of 23 manufacturing groups growing positively. While this is good, we need to focus on the other 13 sectors too. Balanced growth across all industries is essential for sustainable development.
M
Michael C
Seven-month high in IIP growth is encouraging! The double-digit growth in infrastructure and capital goods suggests private investment is picking up. This could be the beginning of a strong investment cycle in India.

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