Chennai, July 19 (UNI) India’s industrial production grew by 19.6 percent in May 2022, the National Statistical Office said.
According to the Index of Industrial Production (IIP) data released by the NSO, the industrial growth in May was 19.6 percent, higher than the growth logged the previous month.
ICRA’s Chief Economist Aditi Nayar said: “The sharp sequential increase in the industrial growth to the 12-month high 19.6 percent in May 2022 was led by manufacturing and electricity, with a more modest uptick reported by mining activities relative to April 2022.” In terms of the use-based categories, all the sub-indices except consumer non-durables displayed a high double-digit growth in May 2022, she said.
On the other hand, consumer non-durables posted a weak 0.9 percent YoY rise in May 2022, reflecting the limited disruption that was caused to the production of this category by the second wave of Covid-19. The IIP growth exceeded the core sector growth after a gap of eight months.
“Industrial growth printed in line with our forecast (19.0 percent) in May 2022, expectedly spiking from the revised 6.7 percent in April 2022 on the subdued base of the second wave of Covid 19 in India in May 2021,” Nayar added.
In month-on-month terms, the sharpest rise was displayed by mining (3.5 percent in May 2022), followed by electricity (2.8 percent) and manufacturing (2.0 percent). The month-on-month uptick in the manufacturing index was favorable compared with the mild dip in the generation of GST e-way bills in May 2022 relative to the previous month.
Relative to the pre-Covid level of May 2019, the performance was decidedly mixed, with capital goods, consumer durables, and consumer non-durables trailing, and primary goods, infrastructure goods, and intermediate goods posting a rise in May 2022.
According to Vivek Rathi, Director, Research, Knight Frank India, the industrial production in May 2022 depicted a broad-based sequential improvement indicating a resilient economic growth so far, unlike in the other major economies where the growth is faltering. “To bring inflation under control and at the same time to harbor growth we expect the RBI to conclude its August 2022 policy meeting with a moderate 25-35 bps repo rate hike,” Rathi added.
