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India’s industrial output growth rebound to a four-month high in June, benefiting from a low base effect of last year when manufacturing had slowed down as dealers cut stock and put fresh orders on hold ahead of the goods and services tax rollout.
The Index of Industrial Production rose 7 percent year-on-year in June, compared to a 0.3 percent decline in the same month last year, data released by the Ministry of Statistics and Programme Implementation showed. A Bloomberg poll of economists had projected a 5.5 percent growth. IIP growth for May was also revised upwards to 3.9 percent from 3.2 percent earlier.
Nineteen out of the 23 industry groups in the manufacturing sector recorded positive growth in June. It was led by the manufacturing of computer, electronic and optical products, which grew 44 percent, followed by manufacturing of motor vehicles, trailers and semi-trailers that rose 20.5 percent over last year.
- Mining output rose 6.6 percent compared with a 0.1 percent growth in June last year.
- Manufacturing output improved 6.9 percent compared with a decline of 0.7 percent.
- Electricity generation growth stood at 8.5 percent compared to 2.1 percent last year.
The use-based classification showed that primary goods output rose 9.3 percent, while capital goods output increased 9.6 percent. Output of intermediate goods which had been acting as a drag on the overall IIP improved slightly growing at 2.4 percent.
- Infrastructure goods production rose 8.5 percent
- Consumer durable output rose 13.1 percent
- Non-consumer durables grew 0.5 percent over last year.
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