Industrial production grows 5.2% in May

India’s industrial production increased to 5.2 percent in May from 4.5 percent in April 2023, primarily driven by strong performance in the manufacturing and mining sectors, according to official data released on Wednesday.

The growth rate of factory output, measured by the Index of Industrial Production (IIP), was 19.7 percent in May 2022, mainly due to a lower base effect.

An official statement explained that the growth rates should be interpreted in light of the unusual circumstances caused by the Covid-19 pandemic since March 2020.

According to the National Statistical Office (NSO), the manufacturing sector’s output grew by 5.7 percent in May 2023, compared to a 20.7 percent expansion a year ago.

Power generation increased by 0.9 percent in May 2023, compared to a growth of 23.5 percent a year ago. Mining output rose by 6.4 percent during the month, compared to an 11.2 percent expansion in the year-ago period.

In terms of use-based classification, the capital goods segment grew by 8.2 percent in May this year, compared to 53.3 percent a year ago. Consumer durables output rose by 1.1 percent, while consumer non-durable goods output increased by 7.6 percent compared to the previous year.

Infrastructure/construction goods posted a growth of 14 percent, while primary goods logged a 3.5 percent increase in the month.

During the April-May period of fiscal 2023-24, the growth in IIP stood at 4.8 percent, down from 12.9 percent in the corresponding period a year ago.