BIG BOOST! India's July factory output grows at 4.3%; manufacturing sector shows positive signs

India's factory output growth rate accelerated in July by 4.3 per cent from a rise of 1.17 per cent reported for June, official data showed on Thursday. The data on a year-on-year (YoY) basis, however, stated that July 2019 factory output growth rate was lower than the 6.5 per cent achieved during the corresponding month of the previous fiscal. "The cumulative growth for the period April-July 2019 over the corresponding period of the previous year stands at 3.3 per cent," the 'Quick Estimates' of Index of Industrial Production for July said.

According to the official statement, Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of July 2019 stand at 100.2, 132.9 and 169.7 respectively, with the corresponding growth rates of 4.9 percent, 4.2 percent and 4.8 percent as compared to July 2018.

"The cumulative growth in these three sectors during April-July 2019 over the corresponding period of 2018 has been 3.4 percent, 2.8 percent and 6.6 percent respectively," it said.

In terms of industries, 13 out of the 23 industry groups in the manufacturing sector have shown positive growth during the month of July 2019 as compared to the corresponding month of the previous year.

The industry group ‘Manufacture of food products’ has shown the highest positive growth of 23.4 percent followed by 17.3 percent in ‘Manufacture of basic metals’ and 15.0 percent in ‘Manufacture of wearing apparel’, it said.

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On the other hand, the industry group ‘Manufacture of paper and paper products’ has shown the highest negative growth of (-) 15.4 percent followed by (-) 13.3 percent in ‘Manufacture of motor vehicles, trailers and semi-trailers’ and (-) 10.9 percent in ‘Printing and reproduction of recorded media’, the data added.