India's Industrial Output Rises To 5.2 Per Cent In May: Govt Data

In April, industrial output, measured by the Index of Industrial Production (IIP), come in at 4.5 per cent. In May 2022, Industrial output grew by 19.7 per cent, the data showed

Industrial production in India grew by 5.2 per cent in May, according to official figures issued by the Ministry of Statistics and Programme Implementation on Wednesday. In April, industrial output, measured by the Index of Industrial Production (IIP), come in at 4.5 per cent. This number was revised from 4.2 per cent reported last month. 

In May 2022, Industrial output grew by 19.7 per cent, the data showed. 

According to the National Statistical Office (NSO) figures, the manufacturing sector's output climbed by 5.7 per cent in May 2023. Mining output increased by 6.4 per cent in the month and the sector power output increased by 0.9 per cent.

"For the month of May 2023, the Quick Estimates of Index of Industrial Production (IIP) with base 2011-12 stood at 145.0. The Indices of Industrial Production for the Mining, Manufacturing, and Electricity sectors for the month of May 2023 stand at 128.1, 142.3, and 201.6 respectively," the ministry said in a statement adding that these estimates will undergo revision in subsequent releases as per the revision policy of IIP.

The preliminary estimates of the Index of Industrial Production (IIP) are released on the 12th of each month. These estimates are based on data received from source agencies, which collect information from the factories and establishments that produce goods. However, there is a six-week delay between the actual production and the release of these estimates.

As per Use-based classification, the indices stand at 149.8 for Primary Goods, 102.7 for Capital Goods, 154.1 for Intermediate Goods and 174.7 for Infrastructure/Construction Goods for the month of May 2023. Further, the indices for Consumer durables and Consumer non-durables stand at 115.2 and 148.0 respectively for the month of May 2023.

Meanwhile, retail inflation in India rose to a three-month high of 4.81 per cent in June from 4.25 per cent in May, according to data from the Ministry of Statistics and Programme Implementation on Wednesday. The previous high CPI was in March at 5.66 per cent. The headline inflation rate snapped its four-month falling streak and was pushed up by a rise in vegetable prices and the fading away of the favourable base effect. 

According to the data, the output of primary goods witnessed a growth of 3.5 per cent in the month, compared to 17.8 per cent growth in the same period last year. On the other hand, the output of intermediate goods in May increased by 1.6 per cent, as opposed to a growth of 17.5 per cent during the corresponding month last year.

As per the data, a number of different manufacturing sectors saw a decline in output. This includes beverages (-7.5 per cent decline), tobacco products (-13.0 per cent decline), textiles (-5.1 per cent decline), wearing apparel (-24.8 per cent decline), leather and related products (-3.3 per cent decline), wood and cork products (-14.1 per cent decline), paper and paper products (-7.6 per cent decline), and computer and electronic products (-8.9 per cent decline) among others.

On the other hand, food products (0.8 per cent growth), printing and media (1.5 per cent increase), coke and petroleum products (0.4 per cent increase), pharmaceuticals (22.6 per cent growth), rubber and plastics products (3.3 per cent growth), non-metallic mineral products (8.5 per cent growth), basic metals (10.7 per cent growth), electrical equipment (12.4 per cent growth), machinery and equipment (9.4 per cent growth), and motor vehicles (8.5 per cent growth) were among the manufacturing sectors that registered growth.

In May, the mining sector grew by 5.8 per cent and the electricity sector output declined by - 0.1 per cent, as per the NSO data.