India’s Index of Industrial Production (IIP) rose by 3.7 percent in June 2023, as compared to 5.2 percent in May 2023, according to official data released on Friday (August 11).
As per data from the Ministry of Statistics, the mining sector recorded a growth rate of 7.6 percent in June against 6.4 percent in May, an improvement of 0.8 percent month-on-month (MoM) growth seen in the previous month.
On the other hand, the manufacturing sector witnessed growth with a rate of 3.1 percent in June compared to 5.7 percent in May. The electricity sector showed an improvement, with a growth rate of 4.2 percent in June compared with 0.9 percent in May.
In terms of primary goods categories, primary goods registered a growth rate of 5.2 percent in June whereas it grew 3.5 percent in May. The capital goods sector displayed growth of 2.2 percent in June against 8.2 percent in May.
Infrastructure goods also witnessed positive growth, with a rate of 11.3 percent in June compared to 14 percent in May.
Meanwhile, experts have also shared their latest industrial data. "The year-on-year (YoY) growth in the IIP slid to a weaker-than-expected three-month low of 3.7 percent 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," said Aditi Nayar, Chief Economist, head of reserach and Outreach, ICRA Ltd.
IIP measures the amount of industrial production for the period under review in comparison with a reference period. This macroeconomic data is important for policymakers as it showcases the current state of important sectors. However, it is important to consider other economic indicators, such as GDP growth, inflation, and employment data to gain a comprehensive view.
First Published: Aug 11, 2023 5:59 PM IST
