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IIP Grows by 7.8%

Handsome gains by the manufacturing sector were largely responsible for the spike

Gains in the manufacturing sector have driven industrial production in India to grow by 7.8 per cent in June, while it was just 2.7 per cent in May. The manufacturing sector grew by 7.3 per cent.

The reason behind that is the manufacturing sector making up as much as two-thirds of what goes into industrial production and any big spike in it makes the overall figure jump up and down significantly.

According to the Index of Industrial Production (IIP) data for the month of June, some 12 out of a total of 17 industrial segments registered gains.

What led to the rise in manufacturing was the great consumer demand, and as a result consumer durables and capital goods sectors have grown by as much as 15.5 per cent and 11.8 per cent respectively.

This was enough to keep the first quarter of the fiscal's numbers positive enough at 3.7 per cent, despite the fact that the first two months had logged lower production figures. The growth in the first quarter of the last fiscal was 5.3 per cent.