Factory output growth slows to 4-month low

New Delhi: India's industrial production growth decelerated to a four-month low of 2.4 per cent in July, mainly due to poor showing by manufacturing, power and mining sectors, according to official data released on Monday. The data showed that the previous low in industrial output growth was recorded at 2.2 per cent in March this year. IIP grew 6.7 per cent in April, 19.6 per cent in May and 12.7 per cent in June. Factory output, measured in terms of the Index of Industrial Production (IIP), had expanded 11.5 per cent in July 2021.

The manufacturing sector expanded 3.2 per cent in July 2022 compared to 10.5 per cent recorded in the year-ago period, as per the data released by the Statistics and Programme Implementation Ministry. The power sector showed a growth of 2.3 per cent as against 11.1 per cent a year ago. The mining sector witnessed a contraction of 3.3 per cent in July 2022 whereas there was a growth of 19.5 per cent in the year-ago period. During April-July this year, IIP rose 10 per cent as against 33.9 per cent growth in the same period a year ago. Capital goods output, which is a barometer of investments, rose 5.8 per cent in July 2022 as against 30.3 per cent growth in the year-ago month. The consumer durables segment grew 2.4 per cent compared to 19.4 per cent growth a year ago. The primary goods segment, which accounts for nearly 34 per cent of the index, expanded 2.5 per cent in July compared to 12.4 per cent growth in the year-ago period. The ministry said the growth rates over the corresponding period of the previous year are to be interpreted considering the unusual circumstances on account of Covid-19 pandemic since March 2020.