Now Reading: Industrial output jumps 7.3% as India’s growth shows mixed signals
-
01
Industrial output jumps 7.3% as India’s growth shows mixed signals
Industrial output jumps 7.3% as India’s growth shows mixed signals
India’s industrial output grew 7.3% year-on-year in June, its fastest pace since July 2024, helped by a favourable base and broad-based sectoral growth. Manufacturing expanded 7.8%, up from 5.2% in May. Yet…
The Story in Brief
India’s industrial output grew 7.3% year-on-year in June, its fastest pace since July 2024, helped by a favourable base and broad-based sectoral growth. Manufacturing expanded 7.8%, up from 5.2% in May. Yet Mint’s macroeconomic tracker found eight of 16 high-frequency indicators below their one-year average range in June, compared with six in May, pointing to softer demand.
Mint’s review of 393 companies found total income rose 18% in the April-June quarter, but expenditure grew 26.5%, leaving net profit broadly unchanged. Outside financial firms, revenue rose 26% while profit fell nearly 20%. Parliament data also showed 576 people reported gross income of at least Rs 100 crore in assessment year 2025-26, nearly four times the 2021-22 figure.
The Indian Opinion
The easy story is either that India’s factory boom proves the economy is racing ahead, or that weaker demand means the recovery is failing. Both claims stretch the data. June’s industrial gain benefited from a low base, while company costs rose faster than revenue and several demand indicators weakened. The sharper test is whether manufacturing growth stays above 7% and profits recover in the next two quarters, without relying on base effects.
Source: livemint.com
This story was synthesised by AI from the source linked above.
