India’s Industrial Growth Sees Steady Rise in June 2024

India’s IIP grew 4.2% in June 2024, up from 4.0% in June 2023. Key sectors, including mining and manufacturing, contributed significantly. Revised indices for previous months also highlight the ministry’s focus on accuracy. Next IIP release is scheduled for September 12, 2024.

India's Index of Industrial Production (IIP) experienced a steady growth of 4.2 percent in June 2024, a slight rise from the 4.0 percent growth recorded in June 2023, according to data released by the Ministry of Statistics and Programme Implementation on Monday. The Quick Estimates for June 2024 placed the IIP at 150.0, up from 143.9 the previous year, driven largely by robust performances in key sectors like mining, manufacturing, and electricity.

The mining sector registered an index of 134.9, reflecting substantial year-on-year growth of 10.3 percent. The manufacturing sector, crucial to India's industrial output, saw a year-on-year growth rate of 2.6 percent, with an index standing at 145.3. The electricity sector also displayed dynamism, achieving an index of 222.8, growing 8.6 percent over the same period last year.

Based on use, the IIP for June 2024 showed varying growth across different segments. Primary goods saw a 6.3 percent rise, while capital goods had a modest growth of 2.4 percent. Intermediate goods recorded a 3.1 percent growth. Infrastructure and construction goods grew by 4.4 percent. Among consumer segments, durables saw an 8.6 percent growth, whereas non-durables faced a slight contraction.

Three key industries influenced the manufacturing sector's growth: electrical equipment (28.4 percent), basic metals (4.9 percent), and motor vehicles, trailers, and semi-trailers (4.1 percent). The ministry also revised IIP indices for May and March 2024, reflecting response rates of 93, 95, and 96 percent for June, May, and March, respectively. The next IIP release is scheduled for September 12, 2024.