India's Industrial Growth Declines to 4.2% in June Amid Sectoral SlowdownsIndia's Industrial Growth Declines to 4.2% in June Amid Sectoral Slowdowns

In June 2024, India’s industrial production growth dipped to 4.2% from 6.2% in May, despite strong performances in the mining and electricity sectors. Capital goods, non-durables, and infrastructure sectors experienced slower growth, highlighting a mixed industrial landscape.

The year witnessed fluctuations in industrial productivity, with the Index of Industrial Production (IIP) peaking in October 2023 at 11.9% before settling to lower rates in the subsequent months, illustrating the volatile nature of industrial growth.

Mining and electricity sectors reported robust growth rates of 10.3% and 8.6% respectively in June 2024, overshadowing the sluggish expansion in manufacturing, which only saw a 2.6% increase. The slowdown in capital goods growth to 2.4% from a previous 2.9% also signalled cooling industrial activity.

Non-durable goods saw a reduction in decline rate to 1.4% from 2.5% in May, suggesting a slight recovery, though infrastructure and construction sectors only grew by 4.4%, a significant drop from the 13.3% growth recorded the previous year.

Overall, primary goods continued to support the IIP with a 6.3% increase, an improvement over the previous year’s 5.3%. Despite the mixed sector performances, these figures were critical in sustaining the IIP’s growth trajectory in a challenging economic environment.