IIP Data: The pace of industrial production in the country has increased. According to the data announced for May 2024, the Index of Industrial Production (IIP) has grown at a pace of 5.9 percent. This increase in the industrial production rate has been seen due to the excellent growth in the production of mining and electricity sectors. Industrial output had increased at the rate of 5 percent in the month of April. Whereas in May 2023, 5.7 percent IIP growth rate was seen. This is the fourth consecutive month when the Index of Industrial Production has increased at a rate of more than 5 percent. Whereas the average growth in the first two months of the financial year 2024-24 has been 5.4 percent.
The Ministry of Statistics has also released IIP data along with retail inflation rate. According to these figures, electricity generation has increased at the rate of 13.7 percent in the month of May, which has increased at the rate of 0.9 percent in the same month a year ago. The output of the manufacturing sector has increased at the rate of 4.6 percent, which had increased at the rate of 6.3 percent a year ago in May 2023. Mining activity has grown at the rate of 6.6 percent, which was 6.4 percent a year ago.
Commenting on the IIP data, Vivek Rathi, National Direct Research, Knight Frank India, said, due to increase in the output of electricity and construction goods, the growth rate of industrial production has been 5.9 percent, which is enough to show that economic activity in the country. There has been an increase in. He said, manufacturing output growth has been slow and it is necessary to accelerate it for long term growth. Rajni Sinha, Chief Economist of CareAge Ratings, said, industrial production in the month of May has been 5.9 percent which is better than expected and has been fast in the last seven months. He said, the most important thing is that due to huge demand for electricity and heatwave, double digit growth has been seen in electricity output.
Primary goods have increased at the rate of 7.3 percent in May 2024. Capital goods grew by 2.5 percent, intermediate goods by 2.5 percent, infrastructure by 6.9 percent, consumer durables by 12.3 percent and non-durables consumer durables by 2.3 percent in May. The budget for the current financial year will be presented on July 23 and it is believed that emphasis can be laid on increasing manufacturing in the country.
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