India’s Industrial Production Growth Hits 5.9% in May 2024

In May 2024, India’s industrial output expanded by 5.9% year-over-year, marking the highest growth in seven months. This growth surpassed expectations, with notable contributions from electricity generation and consumer durables.

Sectoral Performance

• Electricity: Recorded a significant growth of 13.7%.
• Mining: Increased by 6.6%.
• Manufacturing: Grew at a moderate pace of 4.6%.

Use-based Classification

• Primary Goods: Grew by 7.3%.
• Capital Goods: Registered a growth of 2.5%.
• Consumer Durables: Notable growth of 12.3%.
• Consumer Non-durables: Grew marginally by 2.3%.

Key Contributors to Growth

Within manufacturing, sectors like “Manufacture of basic metals” (7.8%), “Manufacture of pharmaceuticals” (7.5%), and “Manufacture of electrical equipment” (14.7%) were the primary drivers of growth.

Outlook and Implications

The robust growth in industrial production, particularly in electricity and consumer durables, signals positive momentum in India’s economic recovery. This uptick underscores the resilience of certain manufacturing sectors despite challenges in others like textiles and food products.