India’s Industrial Production Grows by 4.8% in July 2024
India’s industrial production showed steady growth in July 2024, with the Index of Industrial Production (IIP) recording a rise of 4.8%. This marks an improvement from the 4.7% growth seen in June 2024, according to data released by the Ministry of Statistics and Programme Implementation.
The Quick Estimates for July 2024 show that the IIP stands at 149.6, up from 142.7 in July 2023, reflecting a year-on-year improvement. Notably, the manufacturing and electricity sectors were significant drivers of this growth, with electricity posting a 7.9% increase and manufacturing recording a 4.6% rise. The mining sector also contributed, growing by 3.7% in the same period.
Within the manufacturing sector, specific industries performed particularly well. The production of basic metals grew by 6.4%, while the manufacture of coke and refined petroleum products saw a 6.9% increase. The standout performer was the manufacture of electrical equipment, which surged by 28.3%, making it the top contributor to the sector’s overall growth.
Analyzing the IIP based on the type of goods produced, the indices revealed varied performance. Primary goods recorded an index of 150.1, while capital goods, essential for long-term industrial investments, grew by 12%, with an index of 114.4. Intermediate goods saw an increase of 6.8%, while infrastructure/construction goods reached an index of 178.7, showing the continued strength of India’s infrastructure development. Consumer durables registered a healthy 8.2% growth, but consumer non-durables experienced a decline of 4.4%, indicating some challenges in this segment.
The growth rates based on use classification in July 2024 over the same period last year show promising trends, particularly in primary goods (5.9%), capital goods (12%), and consumer durables (8.2%). However, the drop in consumer non-durables highlights areas for improvement in meeting consumer demand for daily-use products.
The data for June 2024 has undergone its first revision, while April 2024 figures have been finalized. These revisions reflect updated information from source agencies. The response rates for the July Quick Estimates, June’s first revision, and April’s final revision were 91%, 94%, and 96%, respectively, ensuring reliable and accurate reporting of industrial production data.
Looking ahead, the IIP data for August 2024 is set to be released on Friday, October 11.
Doubts Revealed
Industrial Production -: Industrial production means how much stuff factories and industries make. It includes things like cars, clothes, and electricity.
4.8% -: 4.8% is a way to show how much something has increased. If something was 100 before, a 4.8% increase means it is now 104.8.
Index of Industrial Production (IIP) -: The Index of Industrial Production (IIP) is a number that shows how much factories and industries are making. A higher number means they are making more things.
Manufacturing -: Manufacturing is the process of making products in factories. It includes making things like cars, clothes, and toys.
Electricity Sector -: The electricity sector is the part of the economy that makes and supplies electricity to homes and businesses.
Electrical Equipment -: Electrical equipment includes things like wires, switches, and machines that use electricity.
Primary Goods -: Primary goods are raw materials like coal, iron, and wood that are used to make other products.
Capital Goods -: Capital goods are big machines and tools that factories use to make other products, like tractors and factory machines.
Consumer Non-Durables -: Consumer non-durables are products that people use quickly and need to buy often, like food and soap.
Decline -: A decline means something has gone down or decreased. If something was 100 before, a 4.4% decline means it is now 95.6.
