India’s industrial growth, based on the Index of Industrial Production (IIP), recorded a 1.5 per cent growth in June this year, driven by a stronger performance in the manufacturing sector, according to data released by the Ministry of Statistics.
The data showed that the manufacturing sector, which provides quality jobs for the young graduates passing out of the country’s universities and engineering institutes, registered a 3.9 per cent growth in June this year over the same month of the previous year.
The overall index of industrial production during June was higher than the 1.2 per cent registered in the preceding month of May.
Within the manufacturing sector, 15 out of 23 industry groups recorded a positive growth in June over the same moth of the previous year. The top three positive contributors for the month are – “Manufacture of basic metals” (9.6 per cent), “Manufacture of coke and refined petroleum products” (4.2 per cent) and “Manufacture of fabricated metal products, except machinery and equipment” (15.2 per cent), according to the official statement.
In the industry group “Manufacture of basic metals”, item groups “MS slabs”, “HR coils and sheets of mild steel” and “Pipes and tubes of Steel” have shown significant contribution in growth.
The figures on use-based classification show that the production of capital goods, which comprise machines used in factories, went up by robust 3.5 per cent in June. This segment reflects the real investment taking place in the economy which has a multiplier effect on the creation of jobs and incomes going ahead.
The production of consumer durables such as refrigerators, air conditioners and TV sets increased by 2. 9 per cent during the month, reflecting the rise in demand for these products with a rise in incomes.
The infrastructure and construction sector clocked a growth of 7.9 per cent on the back of big ticket government projects being implemented in the highways, railways and ports sectors.
However, electricity generation declined by (-) 2.6 per cent and the mining sector proved to be a laggard with an (-) 8.7 per cent contraction in output during the month. This negative growth in the mining and power sectors weighed on the positive performance of the manufacturing sector.
