On a month-on-month basis, IIP fell 0.1% in August 2024, a notable decline from a growth rate of 4.7% recorded in July, according to the Ministry of Statistics and Programme Implementation.
This marks the first decrease since March, highlighting ongoing challenges in the manufacturing sector amid fluctuating economic conditions.
The data reveals that the three major sectors—Mining, Manufacturing, and Electricity—faced varying degrees of hardship. The Mining sector experienced a significant contraction of 4.3%, due to heavy rainfall impacting operations.
In contrast, the Manufacturing sector managed a modest growth of 1.0%, while Electricity production fell by 3.7%.
The Index of Industrial Production (IIP) for August stood at 145.6, slightly down from 145.8 in the same month last year. Within the manufacturing landscape, certain industries exhibited resilience, with the manufacturing of basic metals contributing positively at 3.0%, followed by the manufacturing of electrical equipment at 17.7%.
Primary goods and Consumer non-durables recorded declines of 2.6% and 4.5%, respectively, while Capital goods and Intermediate goods grew by 0.7% and 3.0%. The Infrastructure/Construction Goods sector also rose 1.9%.
“Domestic private consumption demand is expected to pick up during the early festive season this year. External demand remained weak, evidenced by two consecutive months of contraction in merchandise exports during July and August,” analysts from Info Edge said on the latest consumer manufacturing data.
The latest figures suggest that the industrial sector is navigating a complex environment, with weather-related disruptions and shifting consumer demand shaping performance.
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First Published: Oct 11, 2024 6:21 PM IST