Index of industrial production growth accelerates to 5.1% in May

India’s industrial output edged up to 5.1% in May, improving from 4.9% in April, driven by stronger electricity generation and broad-based manufacturing growth, according to quick estimates of the Index of Industrial Production (IIP) data out yesterday. Manufacturing, which carries the highest weight of 76 percent in the IIP basket, marked a surge of 5.5% in May slightly lower than the growth in April, indicating steady momentum in industrial activity. Electrical equipment recorded the strongest expansion among major manufacturing segments, rising around 21%.

The May reading is the second data release under the new IIP series with the base year of 2022-23, which MOSPI first published on June 1. Electricity and gas supply was the fastest-growing major sector, recording 9.9% growth in May, driven by elevated temperatures as well as a low base. Mining and quarrying sector contracted 1.6%. On a use-based categorization, capital goods were strongest category, with growth of around 13%. Infrastructure and construction goods rose 5.9%, consumer durables gained 7.2%, and intermediate goods edged up 5.8 percent. Primary goods and consumer non-durables were the laggards, at 2.6 percent and 3.6 percent respectively.

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