India's industrial output growth hits four-month high of 3.5% in July

July IIP: Manufacturing boosted industrial growth in July, even as mining contracted 7.2% and electricity rose 0.6%, govt data showed

The Index of Industrial Production (IIP) growth rate in July stood at 3.5 per cent, against 1.5 per cent in June, driven by strong manufacturing activity. This was the sharpest increase in factory output in the last four months, according to data released by the Ministry of Statistics & Programme Implementation (MoSPI) on Thursday.

 

While the manufacturing sector recorded growth of 5.4 per cent in July, the electricity sector logged a marginal growth of 0.6 per cent. However, the mining sector growth was -7.2 per cent during the same period.

Segment-wise IIP growth

Within the manufacturing sector, 14 out of 23 industry groups recorded a positive growth in July. The top three positive contributors for July include manufacturing of basic metals (12.7 per cent), electrical equipment (15.9 per cent), and other non-metallic mineral products (9.5 per cent). Meanwhile, the manufacture of basic metals, sheets of mild steel and flat products of alloy steel also showed significant growth.

   

Based on use-based classification, the top three positive contributors to the growth of IIP included construction goods, intermediate goods, and consumer durables.

 

While capital goods output increased 5 per cent, primary goods were at -1.7 per cent. Intermediate goods and construction goods reported 5.8 per cent and 11.9 per cent growth, respectively. Consumer durables logged 7.7 per cent growth, with consumer non-durables rising marginally at 0.5 per cent.