India’s industrial production grew at 6.6% in July on the back of good performance by the manufacturing sector and higher offtake of capital goods and consumer durables. The factory output, measured by the Index of Industrial Production (IIP) had expanded by just 1% in July 2017, according to the data released by Central Statistics Office (CSO).
The IIP growth for June was also revised downwards to 6.8% from the provisional estimate of 7% released last month, the July data showed. The manufacturing sector recorded 7% growth in July as against a contraction of 0.1% in the same month a year ago. The consumer durables sector recorded an impressive 14.4% growth in July against a dip of 2.4% a year ago. Capital goods production grew by 3% in July as against decline of 1.1% a year ago. The IIP growth in April-July period was 5.4% compared to 1.7% year ago.
In terms of industries, 22 out of 23 industry groups in the manufacturing sector showed positive growth during July 2018. The industry group “manufacture of furniture” has shown the highest positive growth of 42.7% followed by 30.8% in “manufacture of computer, electronics and optical products” and 28.4% in “manufacture of tobacco products”.