India's June industrial output grows by 3.7%

Comparatively, industrial growth had measured 5.2 percent in May, which was subsequently revised to 5.3 percent, and had stood at a substantial 12.6 percent in June 2022.

For the initial quarter of the fiscal year 2023-24, IIP growth registered at 4.5 percent, a decline from the 12.9 percent recorded in April-June 2022 when data was positively influenced by a favorable base effect.

The slower increase in manufacturing output primarily contributed to the drag on industrial growth in June, with manufacturing output rising by 3.1 percent year-on-year, a decrease from the 5.8 percent growth seen in May.

Given that the manufacturing sector constitutes over three-fourths of the IIP, its performance disproportionately impacts the overall industrial growth figure.

While manufacturing exhibited a slower pace of growth, mining and electricity sectors saw faster expansion.

In June, mining output escalated by 7.6 percent, compared to 6.4 percent in May, while electricity production grew by 4.2 percent, a significant improvement from the meager 0.9 percent rise in May.

The increased activity in mining and electricity industries can be attributed to the lower rainfall in June, allowing for heightened mining operations due to drier conditions.

Analyzing goods based on their usage classification reveals noteworthy trends. Primary and intermediate goods production increased more significantly in June, at rates of 5.2 percent and 4.5 percent respectively.

However, other sectors faced challenges; consumer durables output declined by 6.9 percent in June, following a rise in May that marked the first increase in six months.

Capital goods output experienced a modest increase of just 2.2 percent, a decline from the 8.1 percent growth in May.

Furthermore, consumer non-durables growth registered a mere 1.2 percent, in stark contrast to the 8.4 percent growth seen in May.

Output of infrastructure goods, meanwhile, remained consistent, growing by 11.3 percent in both May and June.