New Delhi, Sep 12 (FN Agency) India’s factory output slowed down to four-month low of 2.4% year-on-year in July 2022 as compared to 12.3% in the previous month primarily due to waning of base effect, heavy rainfall in some areas and the shift in consumption to contact-intensive services.
As per Index of Industrial Production (IIP) data released by the Ministry of Statistics & Programme Implementation (MoSPI) on Monday, mining sector output contracted 3.3% in July while electricity generation increased 2.3% year-on-year. Manufacturing sector registered 3.2% growth in July.
Commenting on July IIP numbers, ICRA Chief Economist Aditi Nayar said that the sharp YoY contraction in mining output in July 2022 was a surprise, given the double-digit growth in coal output, and is likely to have been led by the excess rainfall seen during the month. “Industrial output was only 2.1% higher than pre-Covid levels of July 2019, with the consumer durables and non-durables segment lagging their pre-Covid levels by 6.8% and 2.5%, respectively,” she said.