The Index of Industrial Production (IIP) in India grew by 5.2% year-on-year in May 2023, accelerating from a 4.2% gain in the previous month and above market expectations of 4.8%. This is the highest growth rate in 10 months.
What is the industrial production growth rate in India?
The growth was broad-based, with all three major sectors - manufacturing, mining, and electricity - registering positive growth. Manufacturing output surged 5.7%, mining activities grew 6.4%, and electricity generation rebounded 0.9%.
The increase in industrial production is a positive sign for the Indian economy. It suggests that the recovery from the COVID-19 pandemic is gaining momentum. However, it is important to note that the growth is still below the pre-pandemic levels.
The government has taken a number of steps to boost industrial production, including reducing taxes, providing subsidies, and improving infrastructure. These measures are expected to further boost industrial production in the coming months.
Here are some of the major industries that are driving the growth in industrial production in India:
Manufacturing: The manufacturing sector is the largest contributor to industrial production in India. It includes a wide range of industries, such as textiles, automobiles, electronics, and chemicals.
Mining: The mining sector is also a major contributor to industrial production in India. It includes the extraction of minerals such as coal, iron ore, and copper.
Electricity generation:The electricity generation sector is also important for industrial production. It provides power to factories and other industrial establishments.
The growth in industrial production is a positive sign for the Indian economy. It suggests that the recovery from the COVID-19 pandemic is gaining momentum. However, it is important to note that the growth is still below the pre-pandemic levels.
The government has taken a number of steps to boost industrial production, and these measures are expected to further boost industrial production in the coming months.