IIP grows 7.2% sequentially in July
Capital goods, representing investment demand in the economy, expanded at 29.5% year-on-year, while consumer non-durables representing fast-moving consumer goods contracted for the third consecutive month at 1.8%
NEW DELHI : India’s factory output accelerated sequentially to 7.2% in July even as a fading effect of the low base meant year-on-year growth eased to 11.5% during the month.
Data released by the statistics department showed mining, manufacturing and electricity grew 19.5%, 10.5% and 11.1% respectively in July over the same period a year ago.
Out of 32 industry groups, manufacturing of tobacco, pharmaceuticals and furniture remained in negative territory in July. While capital goods representing investment demand in the economy expanded at 29.5% year-on-year, consumer non-durables representing fast-moving consumer goods contracted for the third consecutive month at 1.8% during the month.
The finance ministry on Thursday in its latest Monthly Economic Review said India is poised for an even faster recovery and stronger growth, both in the short and long term on the back of stronger macro-economic fundamentals supported by structural reforms that enable enhanced efficiency and productivity.
“A broad based rebound in several leading macroeconomic indicators in July and August offer bright prospects for India’s continued economic recovery. With government and RBI’s unflinching commitment to put the economy back on track, India is poised for an even faster recovery in the next three quarters of 2021-22. Rapidly increasing vaccination coverage and richer experience with pandemic management provide the confidence that the recovery can be continued even in the event of a third wave," the report released by the Department of Economic Affairs said.
Indian economy grew at 20.1% in June quarter, mainly because of the sharp contraction during the same quarter a year ago.
The report said government’s capex push to crowd-in private investment and financial sector clean-up will further support growth. “In particular, the contact-intensive services sector prepares for revival as rapid progress in India’s vaccination drive aided by targeted relief measures for stressed sectors strengthens demand," it added.
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