The Ministry of Statistics & Programme Implementation (MoSPI) recently released data on India’s Index of Industrial Production (IIP) for June 2024, showing a growth rate of 4.2 percent. This marks a slight increase from the 4 percent growth rate recorded in June 2023, indicating a positive trend in the country’s industrial output.
The IIP data is a crucial indicator of the performance of various sectors of the economy, reflecting the production growth situation in the country. The latest figures show that India’s overall IIP growth rate for the financial year 2024-25 has increased to 5.2 percent, up from 4.7 percent in the previous year. This growth is driven by key sectors such as Mining, Manufacturing, and Electricity.
In June 2024, the Mining sector saw a significant year-on-year growth of 10.3 percent, contributing significantly to the overall IIP growth. The Manufacturing sector also showed positive growth, with a 2.6 percent increase compared to the same period last year. The Electricity sector witnessed a robust growth rate of 8.6 percent, further boosting the overall industrial production numbers.
It is important to note that the Mining sector holds a weightage of 14.37 percent in the IIP data, while Manufacturing dominates with a weightage of 77.63 percent. The Electricity sector accounts for the remaining 7.99 percent, highlighting the importance of these sectors in driving industrial growth in the country.
Despite the overall growth in the IIP numbers, the manufacturing sector saw a slight decline in growth, with a 1.3 percent decrease in April to June 2024 compared to the same period last year. This indicates a mixed performance within the manufacturing sector, with some sub-sectors experiencing a decline in production.
According to the Ministry data, the manufacturing of food products and tobacco products saw a decline of 5.5 percent and 4.9 percent, respectively, in the months of April to June 2024. This highlights the challenges faced by certain industries within the manufacturing sector, which may require targeted interventions to spur growth.
In June 2024, the top three contributors to the growth in the IIP numbers were the manufacture of basic metals (4.9 percent), electrical equipment (28.4 percent), and motor vehicles, trailers, and semi-equipments (4.1 percent). These sectors played a significant role in driving the overall industrial production growth for the month.
Overall, the latest IIP data from MoSPI provides valuable insights into the performance of India’s industrial sectors, highlighting both areas of growth and areas of concern. By analyzing the data and identifying key trends, policymakers and industry stakeholders can make informed decisions to support and enhance the country’s industrial growth trajectory.