India’s Industrial Production Sees Notable Growth of 5.9% in May 2024

The Index of Industrial Production (IIP) in India increased significantly by 5.9% in May 2024, compared to a growth rate of 5% in April, according to data released by the Ministry of Statistics and Programme Implementation (MoSPI) on Friday. This rise surpassed consensus estimates, which had projected a growth of 4.9% for the month.

When examining the data in a year-on-year context, the IIP recorded a growth of 5.7% in May 2023, indicating a consistent upward trend in industrial activity. The peak for the IIP was noted in October 2023 at 11.9%, but growth has shown fluctuations since, slowing to 2.5% in November, 4.2% in December, and 4.1% in January 2024.

Analysing the performance across different sectors in May 2024, the mining sector led the growth with an impressive increase of 6.6%, followed by manufacturing at 4.6% and electricity generation at a robust 13.7% year-on-year. In comparison, the same sectors showed growth rates of 6.4%, 6.3%, and a modest 0.9% in May 2023, respectively.

Further breakdowns reveal that the capital goods segment grew by 2.5% in May 2024, a notable decline from the 8.1% expansion seen in the same month last year. Consumer durables, however, demonstrated a remarkable surge, growing by 12.3% in May 2024 compared to a mere 1.5% in May 2023. Additionally, non-durable consumer goods grew by 2.3% after an 8.9% rise in the previous year.

Infrastructure and construction-related goods showed a modest growth of 6.9% in May 2024, down from a 13.0% expansion year-on-year. The output of primary goods also exhibited a strong performance, increasing by 7.3% in May 2024, compared to a growth of 3.6% in the same period last year.

Overall, these figures reflect a resilient industrial landscape in India, with varied performances across different sectors highlighting the complexity and dynamism of the economy.

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