The Index of Industrial Production (IIP) for India registered a decline in growth in June 2023, with the manufacturing sector particularly affected. The IIP growth, measured through the Index of Industrial Production, dropped to 3.7 per cent in June 2023, marking a three-month low. This decline contrasts with the substantial growth of 12.6 per cent recorded in June 2022, which was influenced by a lower base effect.
Comparatively, the previous low for the IIP was observed at 1.9 per cent in March 2023. However, it rebounded to 4.5 per cent in April and further increased to 5.3 per cent in May 2023. The Quick Estimates of IIP for June 2023, using the base year 2011-12, stood at 143.4.
Analysing the first quarter (April-June) of the fiscal year 2023-24, the IIP growth amounted to 4.5 per cent, a significant drop from the 12.9 per cent recorded in the same period the previous year. It is important to interpret these growth rates in light of the extraordinary circumstances brought about by the COVID-19 pandemic since March 2020.
According to the National Statistical Office (NSO), the data released on IIP indicates that the manufacturing sector’s output experienced a growth of 3.1 per cent in June 2023, a notable decrease from the 12.9 per cent growth observed in the same month the previous year. Additionally, power generation witnessed a rise of 4.2 per cent in June 2023, as opposed to the 16.4 per cent growth seen a year ago. Mining output increased by 7.6 per cent during the review month, slightly lower than the 7.8 per cent growth recorded in the corresponding period the previous year. The sector-specific Indices of Industrial Production for Mining, Manufacturing, and Electricity for June 2023 were 122.3, 141.0, and 205.2, respectively.
Breaking down the data based on usage classification, the growth of the capital goods segment was 2.2 per cent in June 2023, a significant drop from the 28.6 per cent growth seen a year ago. However, consumer durables output witnessed a decline of 6.9 per cent in the same month, in contrast to the 25.2 per cent growth observed in the year-ago period. The output of consumer non-durable goods experienced a modest increase of 1.2 per cent, compared to the 2.9 per cent growth recorded a year earlier.
Meanwhile, infrastructure and construction goods displayed a growth of 11.3 per cent, surpassing the 9.4 per cent expansion seen in the same period of the previous year. The data further revealed that the output of primary goods grew by 5.2 per cent in June, a decrease from the 13.8 per cent growth recorded in the same month the previous year. Additionally, intermediate goods output in June 2023 increased by 4.5 per cent, as opposed to the 10.5 per cent growth observed in the corresponding month of the prior year.
