India’s industrial output, based on the Index of Industrial Production, rose 3.7 per cent in June, according to the official data released on Friday. Industrial production grew 12.6 per cent in June 2022 and 5.2 per cent in May 2023.
According to the latest data from the National Statistical Office (NSO), the manufacturing sector’s output increased by 3.1 per cent in June 2023. Mining output rose 7.6 per cent during the month under review. Power output grew 4.2 per cent in June 2023.
The IIP grew by 4.5 per cent in April-June 2023 compared to 12.9 per cent in the same quarter in 2022.
Aditi Nayar, chief economist and head (research and outreach) at ICRA, said, “The YoY growth in the IIP slid to a weaker-than-expected three-month low of 3.7 per cent in June 2023 belying the hope engendered by the core sector print. The sequential slowdown was led by the manufacturing sector, while the mining and electricity sectors witnessed an improvement in their growth performance amid deficient rainfall in the month.”
She added that on the use-based side, output of consumer durables contracted by a sharp 6.9 per cent YoY led by a continued contraction in exports of such items. Moreover, growth in the output of capital goods and consumer non-durables slowed down sharply relative to May 2023.
“The YoY performance of most available high-frequency indicators such as petrol and diesel sales, generation of GST e-way bills, output of Coal India Limited, cargo traffic at major ports, rail freight traffic and electricity generation improved in July 2023 relative to June 2023. In contrast, the YoY growth in vehicle registrations and finished steel consumption deteriorated in July 2023, relative to the previous month, while remaining in double digits. Based on these trends, ICRA expects the YoY IIP growth to witness an uptick to 4-6 per cent in July 2023,” Nayar said.
Comments
0 comment