India’s industrial output grew 4.8% in July, the second-slowest pace in the financial year 2024-25, from an upgraded 4.7% rise in June, even as mining and electricity growth slowed, and non-consumer durables’ production slipped by a sharp 4.4%, marking the third contraction in four months.
In absolute terms, the Index of Industrial Production (IIP) slipped to a three-month low, with production levels declining 0.73% from June. Manufacturing output growth picked up to 4.6% in July, from 3.2% in June, and was the only broad segment to clock a sequential uptick over June’s levels, albeit by a tepid 1.6%.
Mining output grew a mere 3.7% from a 10.3% rise in the previous month. Electricity generation rose 7.9% in July, from 8.6% in June. On the basis of end-use, production growth fell in four segments in July compared with their pace in June.
Capital goods output grew at the sharpest pace of 12% from a mere 3.8% uptick in June, while intermediate goods production rose 6.8%, more than double the 3% pace recorded in the previous month. Primary goods growth slowed a tad to 5.9% from 6.3% in June, while infrastructure and construction goods rose 4.9% from 7.1% a month earlier.
Consumption trends remained mixed even as consumer durables’ output grew 8.2% from last August, as non-durables’ production fell a sharp 4.4%, after a 1.5% drop in June. In absolute terms, non-durables’ output was the second-lowest in nine months, while durables production was at a three-month low.
In the first four months of the fiscal, non-durables’ production has contracted 1.5% while durables have risen 10%. Overall industrial output has risen 5.2% between April and July this year, a tad higher than the 5.1% uptick recorded in the same period last year.
Sequentially, three of the six segments reported lower production volumes than June — primary goods, infrastructure and construction goods, as well as consumer durables.
Published - September 12, 2024 07:41 pm IST
