A man works inside a workshop in an industrial area in Mumbai. File
| Photo Credit: REUTERS

India’s industrial output growth recovered to a seven-month high of 5.9% in May from about 5% in April, led by a double-digit uptick in electricity generation and consumer durables production, even as manufacturing growth remained underwhelming at 4.6% and half the use-based segments witnessed a deceleration in growth from April levels.

Consumer non-durables production recorded a minor 2.3% growth in May, compared with a 2.5% contraction in April. Their total output in the first two months of 2024-25 still remains 0.1% below the same period last year.

Growth in primary goods production accelerated to 7.3% from 7% in April, while that for consumer durables jumped to 12.3% in May from 10% a month earlier. Base effects from last year, when growth was much milder, aided both these segments’ positive trend.

Year-on-year, capital goods output grew 2.5% in May, from 2.7% in April, but production was 10.8% higher on a month-on-month basis. Intermediate goods grew 2.5% in May, from 3.2% in April, while infrastructure and construction goods growth eased marginally from 8% in April to 6.9% in May.

Coal output electricity generation jump

With the country in the grips of a heat wave in May, coal output rose 6.6% year-on-year and was 4.3% over April levels, while electricity generation jumped 13.7% compared with a 10.2% uptick a month earlier. May’s electricity generation levels were, in fact, the highest in at least 14 months, and 8.2% over April’s output.

Within manufacturing, which constitutes 77.6% of the Index of Industrial Production, six of 23 sectors reported contractions, the same number as in April. Food products (-5.5%), textiles (-0.7%), chemicals (-0.5%), rubber and plastic (-0.9%), and Other manufacturing (-8.6%), were among those sectors that recorded a downturn. On the other hand, five sectors clocked over 10% growth in May, including furniture (23.2%), computers and electronics (20.1%), other transport equipment (16.8%), and electrical equipment (14.7%).

Photo used for representation purpose only.
| Photo Credit: K. Pichumani

India’s industrial output growth hit a three-month low of 3.7% in June, from a revised 5.3% in May, according to official data, with consumer durables’ production slipping back into contraction mode, and manufacturing growth slowing to 3.1% from 5.8% in May.

The data released by National Statistical Office stated that mining output grew 7.6% in June, while Electricity generation, which had recorded a 0.9% uptick in May after two months of contraction, picked up pace to rise 4.2% in June.

Direct tax collections

India’s net direct tax collections had risen 17.33% as of August 10, with a kitty of ₹5.84 lakh crore that constitutes 32.03% of the total Budget Estimates from Direct Taxes in 2023-24.

Gross direct tax collections were at ₹6.53 lakh crore, as of August 10, 15.73% higher than the revenues for the corresponding period of last year. Refunds issued to taxpayers so far this year stand at ₹69,000 crore, 3.73% higher than this time last year.

Overall industrial output levels were, however, 1.2% below May.

Consumer durables, which had recorded the first uptick in six months during May to rise 1.23%, shrank a sharp 6.9% in June. Overall production of durables remains 2.8% below last year’s levels in the first quarter of 2023-24.

Infrastructure and construction goods continued a strong double-digit growth streak for the third month in a row, rising 11.3% in June. However, their output was 1.6% lower than May.