Industrial output grows 7.3% in June, fastest in 22 months
India's industrial production grew by 7.3% in June, marking a 22-month high driven by manufacturing and electricity demand. Economists attribute this growth to resilient domestic demand and effective supply chain management despite global geopolitical uncertainties.
Why it matters
Strong industrial output data serves as a key indicator of economic health and suggests that the Indian economy is successfully navigating global headwinds and inflationary pressures.
NEW DELHI: Industrial production grew 7.3% in June, a 22-month high, as against 2.2% a year ago on account of strong expansion in manufacturing, electricity and gas supply in the month, due to low base effect and resilient domestic demand conditions in the face of prolonged crisis in West Asia and erratic monsoon. Sequentially too, industrial production fared better in June as compared with the downwardly revised figure of 5% in May.The index of industrial production (IIP) data released by the statistics ministry Tuesday pegged the first quarter (April-June) IIP growth at 5.8% as against 3.4% a year ago.Among the sub sectors -- electricity and gas supply (10.6%) recorded the highest growth during the month on account of sustained heat wave conditions.
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