JOIN USIndustrial production grew 7% in June compared with 3.2% in the previous month on the back of a robust capital goods and manufacturing outputs.
The official data released on Friday showed that the year-on-year growth rate in primary goods was 9.3% and in that of capital goods was 9.6% and in infrastructure, the growth rate was 8.5%.
In terms of industries, 19 out of 23 industry groups in the manufacturing sector showed a positive growth during the month of June as compared with the corresponding month of 2017.
The industry group ‘manufacture of computer, electronic and optical products’ showed the highest growth of 44.1% followed by 20.5% in ‘manufacture of motor vehicles, trailers and semi-trailers’ and 15.6% in ‘manufacture of other transport equipment’.
Manufacturing of textiles and tobacco products, however, has shown a decline. The Centre earlier this week increased import duty on 501 textile product line to help domestic industry from cheap import of textile.
“Excellent numbers of IIP growth for June. IIP rises by 7%. Capital goods growth 9.6%. First quarter IIP growth stands at 5.2% with manufacturing also recording same growth. 19 out of 23 industrygroups recorded positive growth with computer and electronics growth at 44%,” said Economic Affairs Secretary Subhash Chandra Garg.
A robust manufacturing output comes on the back of the strongest expansion in Nikkei India Services Business Activity Index since October 2016. Index rose from 52.6 to 54.2 in June, indicating an expansion in business activities in India.