Industrial production growth remains in double digit for 2nd month in June

India's industrial production grew in double digit for the second month in a row at 12.3 percent in June mainly due to strong performance by manufacturing, power and mining sectors, according to official data released on Friday. However, the data showed that the industrial output growth is lower than 19.6 percent recorded in May this year. It was 6.7 percent in April.

Factory output, measured in terms of the Index of Industrial Production (IIP), had expanded by 13.8 percent in June 2021, the data showed. The manufacturing sector expanded by 12.5 percent in June 2022 compared to 13.2 percent recorded in the year-ago period, the data released by the Statistics and Programme Implementation Ministry showed.

The power sector showed a growth of 16.4 percent as against 8.3 percent a year ago, while the mining sector witnessed an expansion of 7.5 percent in June 2022 compared to a 23.1 percent growth last year. During April-June this year, IIP grew 12.7 percent as against 44.4 percent growth in the same period a year ago.

Capital goods output, which is a barometer of investment, rose by 26.1 percent in June 2022 against 27.3 percent in the year-ago month. The consumer durables segment grew by 23.8 percent against 28 percent a year ago.

The primary goods segment, which accounts for nearly 34 percent of the index, expanded by 13.7 percent in June compared to 12 percent growth a year ago. The consumer non-durable segment grew by 2.9 percent in June compared to a contraction of 3.9 percent in the same month a year ago.

The ministry said the growth rates over the corresponding period of the previous year are to be interpreted considering the unusual circumstances on account of COVID-19 pandemic since March 2020.