Industrial output growth slows to 4% in August: Govt
Mumbai, Sept. 30 -- Industrial activity, as measured by the Index of Industrial Production (IIP), remained robust in August, rising 4% year-on-year, just below July's revised 4.3%, according to data released by the National Statistics Office (NSO) on Monday.
All three broad components of the index posted growth in August. Mining, which has a weightage of 14.4% in the IIP, grew at 6% after contracting for every month between April and July. Manufacturing, the largest component with a 77.6% weight, posted a growth of 3.8% and electricity, which has a weight of 8%, rose 4.1%. While the electricity sub sector growth was largely the same as 3.7% seen in July, manufacturing's slowdown over July's 6% growth seems to be a result of an adverse base effect. Manufacturing sub component of IIP had grown at 4.7% and 1.2% respectively in July and August 2024.
By use-based classification, primary goods, capital goods, intermediate goods, and infrastructure goods registered healthy growth. Primary goods (34% weight) expanded 5.2% after four months of contraction. Capital goods (8.2%) grew 4.4%, while intermediate goods (17.2%) rose 5%. Infrastructure and construction goods (12.3%) surged 10.6%, extending July's strong performance. Consumer durables (12.8% weight) rose 3.5%, but consumer non-durables (15.3%) fell sharply by 6.3% after returning to growth in July.
"Growth in India's industrial production came at 4% in August, compared with an upwardly revised 4.3% in July. Improvement in mining and electricity sectors supported the overall IIP growth, however, the upside was capped by a moderation in the manufacturing sector growth," said Rajani Sinha, Chief Economist at CareEdge Ratings....
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