New Delhi, July 12 (FN Agency) Driven by manufacturing and mining sectors, India’s factory output measured in terms of the Index of Industrial Production (IIP) grew by 5.2% year-on-year in May this year, according to data released by Ministry of Statistics & Programme Implementation (MoSPI) on Wednesday. While mining sector output increased by 6.4% year-on-year in May, manufacturing sector recorded 5.7% growth showing acceleration. After falling in March and April this year, electricity production inched up 0.9% in May this year.
Commenting on May industrial production data, Nish Bhatt, Founder & CEO, of Millwood Kane International said, “At 5.2% it is way above most expectations, what is even more heartening to see is that most components have contributed to the rise.” He further said, “The IIP data print indicates strong demand and industrial activity.” India Ratings & Research expects IIP to grow at a modest pace in the near term as indicated by high frequency indicators such as coal production, power demand and steel production. It highlighted the sustained government capex and expected stabilisation of inflation around 5%. “Overall, the agency expects the IIP to be range bound at 5% yoy in June 2023,” it said.