Key facts
- India's industrial output grew 7.3% year-on-year in June.
- Manufacturing output increased by 7.8% year-on-year.
- Electricity generation saw a 10.6% year-on-year rise.
- Mining activity increased by 1% year-on-year.
- Output of consumer durables rose 7.7% year-on-year.
- Capital goods output increased by 14.2% year-on-year.
India's industrial production expanded by 7.3% year-on-year in June, exceeding economists' expectations of 5.7% growth. This acceleration was primarily driven by robust performance in the manufacturing sector, which saw a 7.8% increase in output. Electricity generation also contributed positively, rising by 10.6%.
Mining activity, however, showed slower growth at 1% compared to a revised 1.4% contraction in May. Output for consumer durables, including cars and phones, grew by 7.7%, while capital goods output saw a significant increase of 14.2%.
For the first quarter of the fiscal year (April-June), industrial output grew by 5.8%, a notable increase from the 3.4% growth recorded in the same period a year earlier. The government's increased spending and continued expansion in electricity generation are cited as key factors supporting this industrial growth.