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India’s factory output growth, measured in terms of the Index of Industrial Production (IIP), slowed to a five-month low of 4.2 per cent in June 2024, mainly due to poor performance of the manufacturing sector, though power and mining sectors continue to perform well. IIP grew by 4.0 per cent in June 2023. Industrial production was 6.2 per cent in May, 5 per cent in April, 5.5 per cent in March, 5.6 per cent in February and 4.2 per cent in January 2024. For the month of June 2024, the Quick Estimates of IIP with base 2011-12 stood at 150.0 against 143.9 in June 2023. During the April-June period this fiscal, the IIP growth was 5.2 per cent against 4.7 per cent in the same period of the preceding financial year.

As per the data, the mining output growth accelerated to 10.3 per cent in June against a 7.6 per cent expansion in the year-ago month. The manufacturing sector’s growth decelerated to 2.6 per cent in June compared to 3.5 per cent a year ago. The power generation increased by 8.6 per cent in June against a growth of 4.2 per cent in the same month of the last year. The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of June 2024 stood at 134.9, 145.3 and 222.8 respectively.

As per use-base classification, the output of primary goods logged a 6.3 per cent growth in June this year, up from 5.3 per cent a year earlier. The capital goods segment growth fell to 2.4 per cent in June 2024 from 2.9 per cent in the year-ago period. The expansion in the intermediate goods segment was 3.1 per cent in the month under review, lower than the 5.2 per cent recorded a year ago. The data also showed that infrastructure/construction goods reported a growth of 4.4 per cent in June 2024, down from a 13.3 per cent expansion in the year-ago period. In June this year, consumer durables output expanded 8.6 per cent compared to a 6.8 per cent contraction in June 2023. Consumer non-durable goods production contracted 1.4 per cent during the reporting month against a growth of 0.5 per cent in June 2023.

The indices stood at 156.0 for Primary Goods, 110.0 for Capital Goods, 159.0 for Intermediate Goods and 178.4 for Infrastructure/Construction Goods for the month of June 2024. Further, the indices for Consumer durables and Consumer non-durables stood at 126.9 and 144.6 respectively for the month of June 2024.