NEW DELHI — India’s industrial production grew 5.1 percent in May from a year earlier, accelerating from 4.9 percent growth in April as manufacturing and electricity output strengthened, government data showed Monday.
Manufacturing, which accounts for more than three-fourths of the Index of Industrial Production, expanded 5.5 percent from the same month last year, according to the Ministry of Statistics and Programme Implementation.
Sixteen of the 23 manufacturing industry groups recorded growth. Motor vehicle production rose 14.5 percent, electrical equipment output increased 20.8 percent and basic metals production grew 4.6 percent.
Electricity and gas supply expanded 9.9 percent, while water supply, sewerage and waste management grew 5.5 percent.
Mining was the only major sector to contract, declining 1.6 percent during the month.
Production of capital goods, including machinery used in factories, climbed 12.9 percent. The category is closely watched as an indicator of investment activity in the economy.
Consumer durable output, including electronics, refrigerators and televisions, rose 7.2 percent, while production of consumer non-durables such as soaps and cosmetics increased 3.6 percent.
Infrastructure and construction goods output grew 5.9 percent, supported by continued investment in highways, ports and railway projects.
The ministry also announced changes to the methodology used to calculate industrial production under the new 2022-23 base-year series.
It has adopted the Output Producer Price Index as the deflator for industrial items reported in value terms, replacing the Wholesale Price Index. The change affects 234 of the 463 item groups in the IIP basket, representing 36.02 percent of the index’s total weight.
The ministry revised the entire 2022-23 IIP series using the Output PPI, replacing the WPI-based series released June 1.
The new measure provides more detailed producer-level pricing information and is expected to improve estimates of real output for industries that report production in value terms, the ministry said.
The change is also consistent with international practices and recommendations from the Technical Advisory Committee overseeing the revision of the IIP base year.
Because industrial production data is used to calculate quarterly gross domestic product, the ministry said the revised methodology could support the eventual adoption of PPI-based volume estimates in India’s national accounts. (Source: IANS)
