NEW DELHI: The Index of Industrial Production (IIP) grew sharply to 19.6% in May as compared with 7.1% in April, the National Statistical Office data showed on Tuesday. The manufacturing sector’s output recorded a growth of 20.6% in May this year. In the same month mining output jumped 10.9%, while power generation grew by 23.5%.
IIP had risen by 27.6% in May last year owing to the low base effect. Capital goods output witnessed a growth of 54% in May 2022 as compared with a jump of 74.9% in the previous year. The consumer durables segment surged by 58.5% as against a growth of 80.4% last year.
Meanwhile, the primary goods segment, which comprises nearly 34% of the index, grew by 17.7% in May as compared to 15.8% growth last year. Also, the consumer non-durable segment surged by 0.9% in May as against a growth of 0.2% in the same month last year.
Nikhil Gupta, Chief Economist, MOFSL group said, “IIP grew 19.6% YoY in May’22, slower than Bloomberg consensus of 20.7% (and our forecast of 24.9%). The base effect suggests a lot of noise in the data.” He said IIP could grow double-digit in Jun’22, before easing sharply in the second quarter of the current fiscal.
Output growth
Capital goods output rose 54% in May 2022 as compared with a jump of 74.9% last year. The consumer durables segment surged 58.5% as against 80.4% last year