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The Index of Industrial Production (IIP) which is a measure for factory output improved to 122.6 in June, up 13.6% from 107.9 on a year-on-year basis, according to data released by the National Statistics Office. Factory output had contracted 16.6% in the same month of FY21 and rose 29.3% in May of FY22.
Factory activity was affected due to the nationwide Covid lockdown last year in April and May but had picked up June onwards due to which low-base effect waned in June 2021.
Sector-wise, Manufacturing, which has the highest weightage at 77.63% of IIP, rose by 13 % in June Mining output increased by 23.1% and power generation increased by 8.3% in June.
For the quarter Apr-Jun of FY22, Mining rose 27.4% compared to the year ago period. Manufacturing rose 53.7% and Electricity rose 16.8%.
According to Use-Based categorization, all categories – primary goods, capital goods, intermediate goods, infrastructure/construction goods, consumer durable and consumer non-durables – saw an increase in production.
Capital goods output, which indicates investment by private sector, rose by 25.7% in June, compared with a contraction of 37.4%. Primary goods, which has the highest weightage at 34.04%, saw an increase of 12% in June as against a decline of 14.5% in the corresponding period of FY21. Consumer durables output grew by 30.1% in June, compared with a 34.8% contraction in June last year.
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