Higher capital goods output boosts India’s IIP

 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. This was better than expert

Published: 11th August 2018 01:09 AM  |   Last Updated: 11th August 2018 06:57 AM   |  A+A-

By Express News Service

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. This was better than expert estimations.“Excellent numbers of IIP (Index of Industrial Production) growth for June. IIP rises by 7 per cent. Capital goods grow 9.6 per cent. First quarter IIP growth stands at 5.2 per cent with manufacturing also recording the same growth. Nineteen out of 23 industry groups recorded positive growth with computer and electronics growth at 44 per cent,” economic affairs secretary Subhash Chandra Garg tweeted.

Also, the factory output growth was revised upwards for May at 3.9 per cent from 3.2 per cent estimated earlier, according to data released by the Central Statistics Office on Friday.The manufacturing sector, which constitutes 77.63 per cent of the index, grew by 6.9 per cent in June, against a decline of 0.7 per cent a year ago.

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 April-June 2018 period stood at 5.2 per cent over the corresponding period of the previous year.

“The encouraging news is the jump in production of capital goods and infrastructure/construction goods. 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 Industry.

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