NEW DELHI: After witnessing a slump in may, India’s Industrial output recorded a growth of 7 per cent in June, driven mainly by higher output in manufacturing and capital goods, better than expected by the experts.
“Excellent numbers of IIP growth for June. IIP rises by 7%. Capital goods growth 9.6%. First quarter IIP growth stands at 5.2% with manufacturing also recording same growth. 19 out of 23 industry groups recorded positive growth with computer and electronics growth at 44%,” economic affairs secretary Subhash Chandra Garg tweeted.
Also, the factory output growth for May was revised upwards for May at 3.9 per cent from the previous estimate of 3.2 per cent estimated earlier, according to data released by the Central Statistics Office (CSO) today.
The manufacturing sector, which constitutes 77.63 per cent of the index, grew by 6.9 per cent in June, as against a decline of 0.7 per cent in the year-ago month.
Power generation segment saw a rise of 8.5 per cent during the month as compared to 2.1 per cent growth a year ago. Primary goods saw a rise of 9.3 per cent against 5.7 per cent in May.
The mining sector output recorded an impressive growth of 6.6 per cent in June as against 0.1 per cent in June 2017.
The cumulative growth for the period April-June 2018 stands at 5.2 per cent over the corresponding period of the previous year.
“The encouraging news is the jump in the production of capital goods and infrastructure/construction goods. Even on a low base of last year, this could be the reflection of the positive investment trend, in sectors such as roads, railways and affordable housing. What is also noteworthy is the spike in consumer durables demand”, said Chandrajit Banerjee, Director General, Confederation of Indian Industries (CII).