The Ministry of Statistics and Programme Implementation (MoSPI) has released the Quick Estimates of the Index of Industrial Production (IIP) for August 2024, showing a marginal contraction of (-)0.1 per cent in industrial output compared to a robust growth rate of 4.7 per cent in July 2024. This release, part of the ongoing Azadi Ka Amrit Mahotsav celebrations, provides a comprehensive overview of the industrial sector's performance for the month, offering critical insights into the key drivers and challenges affecting India's industrial landscape.
The IIP data reveals a notable decline in mining output, which fell by (-)4.3 per cent, likely due to the heavy monsoon rains in August that disrupted mining activities. Manufacturing, which represents the largest share of the IIP, managed to post modest growth of 1.0 per cent, while the electricity sector saw a significant contraction of (-)3.7 per cent. These trends indicate a mixed performance across sectors, contributing to the overall stagnation in industrial growth.
In terms of the sectoral indices, the overall IIP for August 2024 stood at 145.6, slightly down from 145.8 in August 2023. Mining, manufacturing, and electricity sectors recorded index values of 107.1, 145.9, and 212.3, respectively. Despite the overall subdued growth, specific industries performed well, with the manufacture of basic metals showing a 3.0 per cent increase, the manufacture of electrical equipment surging by 17.7 per cent, and chemicals and chemical products growing by 2.7 per cent. These sectors were among the top contributors to industrial output for the month.
Analysing the use-based classification, primary goods registered an index value of 141.6, while capital goods stood at 108.1. Intermediate goods recorded growth, with an index of 162.2, and infrastructure or construction goods, a vital sector for industrial expansion, registered an impressive 180.2. The consumer goods segment presented a mixed picture, with consumer durables increasing by 5.2 per cent, while consumer non-durables contracted by (-)4.5 per cent, reflecting changing consumer demand patterns.
The report also highlights revised data for previous months. The IIP figures for July 2024 were revised upward, indicating stronger industrial performance than initially estimated, while the final revisions for May 2024 figures have also been incorporated based on updated information from source agencies. Looking ahead, the IIP for September 2024 is scheduled to be released on 12 November 2024, offering further insights into the trajectory of India’s industrial production.
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