Industrial production expansion to 7-month high of 5.9% in May: Government data

India’s industrial output rose to a seven-month high of 5.9 percent in May 2024, mainly due to good performance by the power and mining sectors, according to official data released on Friday. Factory output growth, measured in terms of the Index of Industrial Production (IIP), was 5 percent in April, 5.4 percent in March, 5.6 percent in February and 4.2 percent in January 2024.
IIP was 4.4 percent in December and 2.5 percent in November 2023. The previous highest level of IIP was recorded at 11.9 percent in October 2023. During the April-May period this financial year, IIP growth was 5.4 percent as against 5.1 percent in the last financial year.
India’s index of industrial production grew 5.7 percent in May 2023, according to a statement from the Ministry of Statistics and Program Implementation.
According to the data, mining output growth increased to 6.6 percent in May, compared to 6.4 percent growth in the same month a year ago.
The growth rate of the manufacturing sector declined to 4.6 percent in May compared to 6.3 percent a year ago. There was an impressive growth of 13.7 percent in power generation in May, compared to a stagnant growth of 0.9 percent in the same month last year.
As per use-base classification, capital goods segment growth fell to 2.5 percent in May 2024 from 8.1 percent in the year-ago period. In May this year, consumer durables production grew by 12.3 percent against a growth of 1.5 percent in May 2023.
Growth in output of consumer non-durable goods slowed to 2.3 percent during the month under review as compared to growth of 8.9 percent in May 2023. According to the data, infrastructure/construction goods registered a growth of 6.9 percent in May 2024, lower than 13 percent growth in the year-ago period.
The data also showed that the production of primary goods registered a growth of 7.3 percent in May this year, compared to 3.6 percent a year ago. The expansion in the intermediate goods segment was 2.5 percent in the month under review, higher than the 3.4 percent recorded a year ago.