Now Reading: Industrial output rises 7.3% as services growth eases in May
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Industrial output rises 7.3% as services growth eases in May
The Story in Brief
The Story in Brief
India’s industrial output grew 7.3% year-on-year in June, its highest rate in six months, led by manufacturing and electricity, provisional data from the Ministry of Statistics and Programme Implementation showed. Manufacturing expanded 7.8%, while electricity and gas supply rose 10.6%. Capital goods output increased 14.2%, pointing to firmer investment activity, though consumer demand remained mixed.
Separately, the trial Index of Services Production grew 9.8% in May, down from 20.8% in April, Livemint reports. Eight of the 19 tracked services recorded double-digit growth. Accommodation and food services grew 27.4%, while retail trade rose 13.3%. Air transport, information and broadcasting contracted. The services index covers about 60% of the sector’s output and remains experimental.
The Indian Opinion
The easy story is that India is enjoying a broad-based boom. The equally lazy counter-story is that the data are worthless because the series are new. The numbers show a more mixed picture: manufacturing and capital goods are strong, but mining and mass consumption lagged, while services growth slowed sharply from April. The key test is whether investment-led industrial growth feeds into consumer demand in the next few months, without margins being squeezed by higher input costs.
Sources (2): livemint.com, livemint.com (2)
This story was synthesised by AI from the 2 sources linked above. Methodology and corrections.
Updated: this story now draws on 2 sources.
Ashin Xavier: interesting
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