According to data released by the Ministry of Statistics & Programme Implementation (MoSPI) on Monday (August 12), India's Index of Industrial Production (IIP) registered a growth of 4.2 per cent in June 2024, marking a slight improvement from the 4.0 per cent growth registered in June 2023.
Mining Sector Takes the Lead
In June 2024, the sector saw a substantial year-on-year (YoY) increase of 10.3 per cent.
Manufacturing Sector Slows Down
Meanwhile, the manufacturing sector which holds a 77.63 per cent weightage of the IIP, rose by just 2.6 per cent YoY.
During the quarter April to June 2024 quarter, the manufacturing growth fell to 3.8 per cent to 5.1 per cent in the same period previous year.
Electricity Sector
The electricity sector recorded a 8.6 per cent YoY growth in June 2024 although this sector holds a small weightage of 7.99 per cent in the IIP.
Monthly Indices and Growth Rate (in %) of IIP for the last 13 months | www.mospi.gov.in
Certain industries have stood out as key drivers of growth. The manufacture of electrical equipment saw a surge of 28.4 per cent, the manufacture of basic metals rose by 4.9 per cent.
In addition to this, the production of motor vehicles, trailers, and semi-trailers increased by 4.1 per cent.
Annual outlook
For the financial year 2024-25, India’s IIP growth rate has risen to 5.2 per cent, up from 4.7 per cent in the last year.
Index of Industrial production sectorial | www.mospi.gov.in
Sectoral Indices and Use-Based Classification
The IIP indices stand at 150.0 for the overall industrial production, with mining at 134.9, manufacturing at 145.3, and electricity at 222.8.
What’s Next?
The upcoming IIP data release for July 2024, scheduled for September 12.
