中文
India's industrial output witnessed a remarkable expansion in August, reaching its fastest pace in the past 14 months, driven by robust manufacturing, electricity generation, and mining activities, showed data released by the Ministry of Statistics and Programme Implementation October 12.
The index of industrial production (IIP) increased by 10.3% year on year, surpassing July's revised growth of 6% from 5.7%. This figure exceeded the expectations of economists polled by Bloomberg, who had predicted a growth of 9.1% for August.
Manufacturing output saw a notable increase of 9.3% year on year. Additionally, electricity generation recorded a substantial rise of 15.3% on the year, while mining activities rose 12.3%, data showed.
The manufacturing sector's growth was primarily boosted by higher production in metals (steel), mineral products (cement), and transport equipment, said Suman Chowdhury, chief economist at Acuite Ratings.
The mining sector possibly benefited from rainfall shortages in August, accompanied by elevated power demand, Chowdhury said. Typically, electricity generation declines during the monsoon months due to irregular rainfall.
The positive IIP trend was also reflected in various sectors. Consumer goods output rebounded, registering growth for the first time in three months, with a notable 5.7% rise as industries began restocking for the festival season.
Furthermore, infrastructure goods and capital goods demonstrated a year-on-year pickup of 14.9% and 12.6%, respectively.
Cumulatively, the IIP has shown a healthy year-on-year growth of 6.1% in the first five months of the fiscal (April-August 2023), indicating a significant accelaration in industrial activity. Chowdhury expected the IIP to sustain this positive trend for FY24, although the base factor may become less favorable in the second half of the year.
Madan Sabnavis, an economist at Bank of Baroda, also was optimistic about potentially sustained growth in September and October if rural demand experiences a revival.
(Writing by Riley Liang Editing by Emma Yang)
For any questions, please contact us by inquiry@fwenergy.com or +86-351-7219322.
