India IIP Data: Due to heavy demand for electricity and heatwave, double digit growth has been seen in electricity output, which has affected the IIP growth rate.
IIP Data: The pace of industrial production in the country has increased. According to the data declared for May 2024, the Index of Industrial Production (IIP) has grown at a rate of 5.9 percent. This increase in industrial production rate has been seen due to excellent growth in the production of mining and electricity sectors. Industrial output grew at a rate of 5 percent in the month of April. Whereas in May 2023, 5.7 percent IIP growth rate was seen. This is the fourth consecutive month when the Index of Industrial Production has grown at a rate of more than 5 percent. Whereas the average growth in the first two months of the financial year 2024-24 has been 5.4 percent.
The Ministry of Statistics has also released IIP data along with retail inflation. According to these figures, electricity generation grew at a rate of 13.7 percent in May, which grew by 0.9 percent in the same month a year ago. The output of the manufacturing sector grew at a rate of 4.6 percent, which grew at a rate of 6.3 percent in May 2023 a year ago. Mining activity grew at a rate of 6.6 percent, which grew at a rate of 6.4 percent a year ago. Commenting on the IIP data, Vivek Rathi, National Direct Research, Knight Frank India, said, due to increase in the output of electricity and construction goods, the growth rate of industrial production has been 5.9 percent, which is enough to tell that economic activity in the country has increased. He said, manufacturing output growth has been slow and it is necessary to accelerate it for long-term growth. CareAge Ratings Chief Economist Rajni Sinha said, industrial production in May has been 5.9 percent, which is better than expected and has been fast in the last seven months. He said, the most important thing is that due to heavy demand for electricity and heatwave, double digit growth has been seen in electricity output.
Primary goods have increased at the rate of 7.3 percent in May 2024. Capital goods grew by 2.5 percent, intermediate goods by 2.5 percent, infrastructure by 6.9 percent, consumer durables by 12.3 percent and non-durables consumer durables grew by 2.3 percent in May. The budget for the current financial year will be presented on July 23 and it is believed that the budget may focus on increasing manufacturing in the country.
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