August 12th 2024.
On Monday, official data was released showing that India's industrial production had slowed to a five-month low of 4.2% in June 2024. This was largely due to the underperformance of the manufacturing sector, while the power and mining sectors continued to show strong growth. The growth of factory output, measured by the Index of Industrial Production, had been 6.2% in May, 5% in April, and 5.5% in March, before dropping to 4.2% in January 2024.
In the first quarter of the fiscal year, from April to June, the IIP growth was 5.2%, slightly higher than the 4.7% growth seen in the same period of the previous financial year. The Ministry of Statistics & Programme Implementation reported that India's Index of Industrial Production had grown by 4% in June 2023.
Looking at the specific sectors, the data showed that mining output had increased by 10.3% in June, a significant jump from the 7.6% growth seen in the same month last year. However, the manufacturing sector experienced a slowdown, with growth dropping to 2.6% in June compared to 3.5% in the previous year.
Meanwhile, power generation saw a significant increase of 8.6% in June, up from 4.2% in the same month last year. In terms of use-based classification, the growth of the capital goods segment fell to 2.4% in June 2024, down from 2.9% in the same period last year.
The consumer durables segment saw a strong growth of 8.6% in June 2024, a significant improvement from the 6.8% contraction seen in June 2023. However, consumer non-durable goods production saw a decline of 1.4% in June, compared to a 0.5% growth in May 2023.
Looking at the data in terms of specific goods, infrastructure and construction goods reported a growth of 4.4% in June 2024, a considerable drop from the 13.3% expansion seen in the same period last year. The output of primary goods saw a growth of 6.3% in June this year, up from 5.3% in the previous year. The intermediate goods segment saw a growth of 3.1% in June 2024, lower than the 5.2% growth seen in June 2023.
In summary, India's industrial production saw a slowdown in June 2024, with the manufacturing sector underperforming while the power and mining sectors continued to show strong growth. However, the overall IIP growth for the first quarter of the fiscal year was slightly higher than the previous year.
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