India's Industrial Output Decelerates to 4.8% in July 2024

India's industrial production output slowed to 4.8% year-on-year in July 2024, mainly due to weak performance in the manufacturing and mining sectors, according to official data. The Index of Industrial Production (IIP) had a slight upward revision for June and showed varied growth rates across different sectors and goods classifications.

India's industrial production output slowed to 4.8 per cent year-on-year in July 2024, primarily due to a weak performance in the manufacturing and mining sectors, according to official data released on Thursday.

The factory output growth, as measured by the Index of Industrial Production (IIP), was revised to 4.7 per cent in June, up from provisional estimates of 4.2 per cent announced last month.

During the April-July period this fiscal year, IIP growth stood at 5.2 per cent, slightly higher than the 5.1 per cent recorded in the same period of the previous fiscal year.

In July 2023, IIP had grown by 6.2 per cent, as reported by the Ministry of Statistics & Programme Implementation. The data revealed that mining output growth decelerated to 3.7 per cent in July 2024, down significantly from a robust 10.7 per cent expansion in the year-ago month.

The manufacturing sector's growth also declined, settling at 4.6 per cent in July, compared to 5.3 per cent a year earlier. Conversely, power generation increased by 7.9 per cent in July 2024, slightly down from an 8 per cent growth in the same month last year.

According to use-based classification, the capital goods segment saw an accelerated growth of 12 per cent in July 2024, up from 5.1 per cent in the year-ago period. However, consumer non-durable output declined by 4.4 per cent this July, a stark contrast to an 8.3 per cent growth in July 2023. In a positive sign, consumer durable goods production grew by 8.2 per cent, reversing a contraction of 3.6 per cent in July 2023.

Meanwhile, infrastructure/construction goods reported a growth of 4.9 per cent in July 2024, down from a significant 12.6 per cent expansion in the year-ago period. The output of primary goods saw a 5.9 per cent growth, down from 7.7 per cent a year earlier. The intermediate goods segment recorded a 6.8 per cent growth, higher than the 3.2 per cent achieved a year ago.

(With inputs from agencies.)