IIP Estimates For August: India’s Industrial Production Drops For First Time In 2 Years

Bhubaneswar: India’s industrial production dropped for the first time in two years as the Index of Industrial Production (IIP) came down by 0.1%.

According to estimates released by the Ministry of Statistics and Programme Implementation (MoSPI) on Friday, The IIP growth rate for August was (-)0.1% compared to 4.7% in July.

The growth rates of the three sectors – mining, manufacturing and electricity – for August stand at (-)4.3%, 1% and (-)3.7% respectively. It is likely that the decline in the growth of Mining sector is due to heavy rainfall in the month.

The quick estimates of IIP stand at 145.6 against 145.8 in August 2023. The indices of industrial production for the mining, manufacturing and electricity sectors for August have been pegged at 107.1, 145.9 and 212.3 respectively.

Within the manufacturing sector, top three positive contributors manufacture of basic metals (3.0%), manufacture of electrical equipment (17.7%) and manufacture of chemicals and chemical products (2.7%), said a release of the ministry.

As per the use base classification, the indices stand at 141.6 for primary goods, 108.1 for capital goods, 162.2 for intermediate goods and 180.2 for infrastructure/construction goods for August. Further, the indices for consumer durables and consumer non-durables have been estimated at 129.6 and 141.6 respectively.