India’s Industrial production rises to 5.2% in April to June; IIP at 4.2% for June 2024

The Ministry of Statistics & Programme Implementation's (MoSPI) Index of Industrial Production (IIP) is at 4.2 per cent for June 2024. The IIP growth rate for the month has increased 0.2 per cent when compared to 4 per cent growth rate in June 2023, according to Ministry data released on Monday, August 12.

India's IIP growth rate has increased 0.5 per cent to 5.2 per cent for the financial year 2024-25, compared to 4.7 per cent in the previous year. The IIP data has three key sectors which reflect the production growth situation in the country.

The Mining sector grew 10.3 per cent year-on-year in June 2024 compared to the June 2023 levels. The Manufacturing and Electricity sector rose 2.6 per cent and 8.6 per cent, respectively, year-on-year in June 2024, compared to the same period the previous year, according to the data release. The Mining sector fueled the IIP growth in June 2024.

The mining sector holds a 14.37 per cent weightage in IIP data, whereas the majority is held by Manufacturing at 77.63 per cent, and the remaining 7.99 per cent weightage is held by the Electricity sector.

India's manufacturing sector saw a 1.3 per cent decline in growth at 3.8 per cent for April to June 2024, compared to 5.1 per cent in the same period the previous year. This shows that even though the IIP data has shown growth, the major manufacturing sector reflects a decline in growth figures, according to the data provided by the Ministry of Statistics & Programme Implementation (MoSPI).

The ministry data also showed that in the months of April to June 2024, the growth from the manufacturing of food products and the manufacturing of tobacco products fell 5.5 per cent and 4.9 per cent, year-on-year, according to the press release.

In June 2024, the top three contributors to the growth in the IIP numbers are the manufacture of basic metals, which rose 4.9 per cent, the manufacture of electrical equipment, which gained 28.4 per cent, and the manufacture of motor vehicles, trailers, and semi-equipments, which rose 4.1 per cent.