India's industrial output growth rebounded to a four-month high in the month of June when compared to the same period last year. The growth was mainly due to a low base effect in the last year where manufacturing had slowed down as dealers cut stock and put fresh orders on hold ahead of the implementation of GST on 1 July 2017.
The Index of Industrial Production (IIP) for June 2018 was up by 7 percent on a year-on-year basis against a 0.3 percent decline in the same month last year, according to the data released by the Ministry of Statistics and Programme Implementation.
In the manufacturing sector, 19 out of the 23 industry groups recorded a positive growth in the month, led by the growth of manufacturing of computer, electronic and optical products at 44 percent. Meanwhile, mining output was up by 6.6 percent, manufacturing output grew by 6.9 percent and electricity generation improved at 8.5 percent.
The use-based classification showed that primary goods output rose 9.3 percent, while capital goods output increased 9.6 percent. The 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, while consumer durable output was up by 13.1 percent and non-consumer durables grew by 0.5 percent over last year.