Industrial Output Growth Eases To 6.7% In July From Upwardly Revised 8.8%: NSO

New Delhi, Aug 29 (KNN) India’s industrial output growth slowed to 6.7 per cent in July from an upwardly revised 8.8 per cent in June, with three of four broad sectors recording weaker growth, according to NSO data.

The IIP stood at 124.8 in July, unchanged from June. Manufacturing, electricity, and water supply sectors grew, while mining and quarrying contracted after expanding in June.

Industrial Output Growth Moderates In July

The moderation in industrial output growth was driven by slower expansion across three of the four broad sectors, while mining and quarrying slipped into contraction, reported Business Standard.

Manufacturing Growth Slows

Manufacturing output growth, which has the highest weight in the IIP, eased to 7.3 per cent in July from 9.5 per cent in June.

Of the 23 industry groups at the two-digit level, 19 recorded year-on-year growth.

Electrical Equipment Leads Manufacturing Growth

Electrical equipment manufacturing led the expansion with 28.3 per cent growth, followed by motor vehicles, trailers and semi-trailers at 22.2 per cent and machinery and equipment not elsewhere classified at 12.1 per cent.

Beverages and other transport equipment also recorded strong growth of 21.9 per cent and 22 per cent, respectively.

Tobacco, Pharmaceuticals Among Declining Segments

Four industry groups recorded contraction, led by tobacco products at 12.2 per cent, followed by pharmaceuticals at 5.6 per cent, chemical products at 2.7 per cent and wearing apparel at 0.6 per cent.

Electricity Growth Eases, Mining Contracts

Electricity and gas supply remained the fastest-growing broad segment, expanding 8.7 per cent in July compared with 11.3 per cent in June. Electricity generation from non-renewable sources increased 12.5 per cent, while the electricity sub-component grew 9.3 per cent.

Renewable generation rose 3.2 per cent, while gas supply declined 1 per cent. Water supply, sewerage and waste management recorded 7.4 per cent growth.

Mining and quarrying contracted 0.9 per cent, reversing the previous month's growth.

Metallic Minerals Buck Trend

The decline was led by non-metallic minerals, which fell 12.5 per cent, and fuel minerals, which declined 1.3 per cent.

Metallic minerals bucked the trend, registering 24.3 per cent growth.

Consumer Non-Durables Contract

Under the use-based classification, five of six segments recorded slower growth in July. Consumer non-durables contracted 1 per cent, reversing 5.6 per cent growth in June, while consumer durables was the only segment without a month-on-month slowdown. 

(KNN Bureau)