India’s industrial production grows 2.4% in July

India’s industrial output grew by just 2.4% in July from 12.7% in June, with output levels dropping 2.75% month-on-month as per the Index of Industrial Production (IIP).

Manufacturing sector growth dropped to just 3.2%, while electricity output grew just 2.3%, moderating sharply from double-digit growth in June.

Mining sector output contracted 3.3% during July, compared to a 7.8% rise in June on a year-on-year basis. Consumer non-durables’ production dropped 2% in July from a 2.96% uptick in June.

Capital goods production recorded the highest growth among use-based categories at 5.8% but contracted sequentially in July by 6.7% from June levels. The intermediate goods segment was the only one to clock growth from July 2021 as well as June 2022 output levels — rising 3.6% and 1.6%, respectively.

Production growth in the consumer durables sector, which had led industrial growth in June with a 25.07% surge, sobered to 2.4% this July, with total output reported nearly 3% lower than June 2022 levels.

While July’s industrial output growth rate is the lowest since April, the National Statistical Office also revised downward the index for April to reflect a growth of 6.66% compared to 7.1% estimated earlier.