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| Photo Credit: REUTERS

India’s industrial output growth rose 4.8% in July, the second-slowest pace in the financial year 2024-25, from an upgraded 4.7% growth in June, even as mining and electricity growth slowed, and non-consumer durables’ production slipped a sharp 4.4%, marking the third contraction in four months.

In absolute terms, the Index of Industrial Production (IIP) slipped to a three-month low, with production levels declining 0.73% from June. Manufacturing output growth picked up to 4.6% in July, from 3.2% in June, and was the only broad segment to clock a sequential uptick over June’s levels, albeit by a tepid 1.6%.

Mining output grew a mere 3.7% from a 10.3% rise in the previous month. Electricity generation rose 7.9% in July, from 8.6% in June.

On the basis of end-use, production growth fell in four segments in July compared with their pace in June.

Capital goods output grew at the sharpest pace of 12% from a mere 3.8% uptick in June, while intermediate goods production rose 6.8%, over double the 3% pace recorded in the previous month. Primary goods growth slowed a tad to 5.9% from 6.3% in June, while infrastructure and construction goods rose 4.9% from 7.1% a month earlier.

Consumption trends remained mixed even as consumer durables’ output grew 8.2% from last August, as non-durables’ production fell a sharp 4.4%, after a 1.5% drop in June. In absolute terms, non-durables’ output was the second-lowest in nine months, while durables production was at a three-month low.

In the first four months of the fiscal, non-durables’ production has contracted 1.5% while durables have risen 10%. Sequentially, three of the six segments reported lower production volumes than June — primary goods, infrastructure and construction goods, as well as consumer durables.

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India’s industrial output growth slumped to a five-month low of 4.2% in June, with manufacturing output growth halving to 2.6% from the previous month, and electricity generation easing 2.8% from May’s record high in the face of an abating heat wave.

On the basis of end-use, production growth fell in all six segments compared to May, with consumer non-durables’ output shrinking 1.4% from last June, marking the second such contraction in three months.

The National Statistical Office also upgraded May’s Index of Industrial Production (IIP) to 6.2%, the highest in seven months, from its initial estimate of 5.9%.

Mining was the only segment to clock an acceleration in growth in June, with output rising 10.3% year-on-year, from 6.6% in May. However, actual production levels were 1.2% lower than May.

Within manufacturing, which accounts for nearly 78% of the IIP, nine out of 23 segments reported a contraction this June, including beverages, textiles, leather products and pharmaceuticals. Three sectors reported a double-digit rise in production — electrical equipment (28.4%), furniture (16%) and computers and electronics (10.7%).

June’s industrial performance fell below most economists’ forecasts, despite a beneficial base from last year when output had grown 4%. Consumer durables’ production clocked the highest uptick of 8.6%, over a 6.8% contraction last year, while primary goods grew 6.3%.

Capital goods’ output growth slowed to 2.4% from 2.9% in May, but June’s production levels were the highest so far in 2024-25. Intermediate goods’ production growth cooled to 3.1% from 3.9% in May and 5.2% a year ago, while infrastructure and construction goods’ rose just 4.4% compared to 6.3% in May and 13.3% a year ago.

Overall industrial output has risen 5.2% in the first quarter of this year, compared with 4.7% in 2023-24, with consumer non-durables being the only segment to report a contraction through this period, with production dropping 0.5% from a 6.8% uptick last year.

New Delhi:

Industrial output rose 5.9% year-on-year in May, government data showed on Friday.

Economists polled by Reuters had expected growth of 4.9%.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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| 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.