The year-on-year (YoY) growth in India’s index of industrial production (IIP) rose to a three-month high of 5.2 percent in May this year (19.7 percent in May last year) from the revised 4.5 percent in April, despite unseasonal rains and an adverse base. This was in line with rating agency ICRA’s estimate of 5.2 percent for that month.
The improvement was broad-based across all the sub-sectors, including manufacturing (5.7 percent in May from 5.2 percent in April).
Fifteen sub-sectors, including textiles, saw an improvement in their YoY performance in May relative to April.
Industrial output recorded a rise of 3.2 percent in May this year, ICRA said in a note.
The performance of most available high-frequency indicators weakened in June 2023, relative to May 2023; this is likely to restrict the YoY IIP growth to around 3-4 percent in June this year. It is expected to average at 4-4.5 percent in the first quarter (Q1) of fiscal 2023-24, similar to the 4.4 percent growth seen in Q4 of the last fiscal.
