Overview of Industrial Output Growth in July 2024
The latest data from the Union Ministry of Statistics and Program Implementation reveals that India’s industrial output recorded a growth of 4.8% in July 2024. While this figure indicates a positive growth trend compared to the previous month, it marks a decline when compared to the same month last year, where the growth was notably higher at 6.2%. Despite this annual decline, the industrial production displayed resilience as it improved from June’s growth rate of 4.2%.
Monthly Trends in Industrial Production
The Indices of Industrial Production (IIP) over the past few months have shown fluctuating growth rates:
| Month | IIP Growth (%) |
|---|---|
| July 2024 | 4.8 |
| June 2024 | 4.2 |
| May 2024 | 5.9 |
| April 2024 | 5.0 |
| March 2024 | 4.9 |
| February 2024 | 5.7 |
| January 2024 | 3.8 |
Sector-wise Performance
Breaking down the industrial output by sector in July 2024, the manufacturing sector saw a growth rate of 4.6%, though this was down from 5.3% in July 2023. The mining sector enjoyed a 3.7% increase, while electricity production saw the most significant growth at 7.9%. This indicates a diverse performance across different sectors of the industrial landscape.
Performance in the First Four Months of Financial Year
In the first four months (April-July) of the current financial year, the overall industrial production grew at a rate of 5.2%. This is a marginal increase compared to the 5.1% growth in the same period the previous year, demonstrating a steady but cautious recovery.
Capital Goods and Consumer Durables
One of the noteworthy highlights from this report is the robust growth of the capital goods segment, which surged by an impressive 12%. However, not all sectors experienced growth; for instance, consumer durables witnessed a decline of 8.2% month-on-month, sliding slightly from 8.6% in June. Similarly, the growth rate for goods associated with infrastructure and construction fell sharply to 4.9%, compared to 11.4% in July 2023.
Overall Market Sentiment
As the data continues to evolve, it paints a complex picture for Indiaโs industrial sector. While certain sectors such as capital goods are thriving, others face headwinds, suggesting that businesses and policymakers need to address these challenges to sustain growth. The decline in primary goods growth to 5.9% from 7.6% a year ago also warrants further analysis, reflecting potential shifts in demand and supply dynamics in the market.
