India’s factory output in June grows 12.3 pc on low base

New Delhi: On the back of favorable base, India’s factory output measured by Index of Industrial Production (IIP) grew by 12.3% in June this year reflecting ongoing economic recovery post-pandemic.
As per the data released by the Ministry of Statistics and Program Implementation (MoSPI) on Friday, mining output in June rose 7.5% year-on-year while the manufacturing sector grew 12.5%.
The electricity sector registered 16.4% year-on-year growth in June.
Cumulatively, the Index of Industrial Production (IIP) grew 12.7% during the April-June period of the current financial year.
“As anticipated, the normalizing base resulted in a fairly broad-based dampening of the IIP growth to 12.3% in June 2022, although this was appreciably higher than our forecast of 10.2% led by the manufacturing sector,” said ICRA Chief Economist Aditi Nayar.
“Given the moderation in the YoY performance recorded by most high frequency indicators in July 2022, such as electricity generation, non-oil exports etc., we expect the IIP growth to ease to high single digits in that month,” she added. (UNI)