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6h ago

India's Industrial Output Rebounds to 3.5% in July on Manufacturing Gains

Analysts say the manufacturing-led uptick masks weakness in mining, with electricity barely growing, leaving April–July growth at 2.3%.

A labourer welds an iron pillar at a building material factory in an industrial area in Dasna, in the central Indian state of Uttar Pradesh, India, January 9, 2019. Picture taken January 9, 2019. REUTERS/Adnan Abidi/File Photo
Photo: IANS
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Overview

  • Official NSO data show IIP rose to a four-month high of 3.5% in July from 1.5% in June, with June’s estimate left unchanged on revision.
  • Manufacturing output increased 5.4% year on year, as 14 of 23 industry groups expanded and basic metals, electrical equipment and other non‑metallic mineral products led the gains.
  • Mining activity contracted 7.2% and electricity output rose 0.6% in July, underscoring an uneven industrial recovery.
  • Use-based trends were mixed: infrastructure/construction goods jumped 11.9% to a 21‑month high, capital goods rose 5%, consumer durables grew 7.7% and non‑durables edged up 0.5%, while primary goods fell 1.7%.
  • Cumulative industrial growth slowed to 2.3% in April–July versus 5.4% a year earlier, with forecasters citing monsoon effects, GST rationalisation timing, monetary transmission and new US tariffs as near‑term headwinds.