Factory output growth for June at 3.7%

India’s industrial production recorded a growth of 3.7% in June. This is the lowest growth in three months. The factory output growth in terms of the Index of Industrial Production (IIP) stood at 12.6 per cent in June 2022 due to a lower base effect. The previous low of IIP was at 1.9 per cent in March 2023. Thereafter, it rose to 4.5 per cent in April and further to 5.3 per cent in May.

For the first quarter of April-June 2023, the growth works out to be 4.5 per cent, down from 12.9 per cent in the corresponding period a year ago.
“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 said.

According to the data the National Statistical Office (NSO), the manufacturing sector’s output grew 3.1 per cent in June 2023 against a 12.9 per cent a year ago.

Power generation rose 4.2 per cent in June 2023 compared to 16.4 per cent a year ago. Mining production grew by 7.6 per cent against 7.8 per cent in the year-ago period.

The capital goods performed poorly, growing just 2.8% compared to 28.6 per cent a year ago.
Consumer durables output during the month dropped 6.9 per cent against a 25.2 per cent growth in the year-ago period.

Consumer non-durable goods output increased by 1.2 per cent compared to a growth of 2.9 per cent a year earlier. Infrastructure/construction goods posted a growth of 11.3 per cent over a 9.4 per cent expansion in the same period a year ago.
The data also showed that the output of primary goods logged 5.2 per cent growth in the month against 13.8 per cent in the year-ago period.
The intermediate goods output in June rose 4.5 per cent compared to a 10.5 per cent growth during the corresponding month last year.