Industrial India is on the move and the Index of Industrial Production (IIP) numbers have shown a significant 5.9 percent rise in May from a year earlier. This, according to the Ministry of Statistics and Programme Implementation (MoSPI), is up from five percent in the previous month of April, and way above the market expectation of 4.9 percent for May.
This promising trend is after a 5.7 percent IIP growth in May 2023, providing evidence for the steady industrial growth. However, the IIP growth was the highest in October 2023 at 11.9 percent, and in the following months, the rates began to stabilize at lower levels.
That said, growth numbers specific to the sectors in May 2024 also convey this upward trend. Mining surged by 6.6 percent, Manufacturing by 4.6 percent and the other marked increases such as Electricity by 13.7 percent year-on-year.
The capital goods segment grew at 2.5 percent in May 2024, though it is still below last year’s 8.1 percent. It indicates continuous funding to maintain industrial competence. At the same time, the consumer durables sector soared, the production of which increased by 12.3 percent, which is dramatically higher than the 1.5 percent in May of the year 2023.
This is an upward movement in industrial production in India and seems to be increasing at a faster rate, which is likely to set the tone for the future months.
