IIP - #SectorUpdates
India’s Index of Industrial Production (IIP) was hovering around an average of 2.25% between November 2021 and March 2022, thereafter it jumped to 6.74% in April 2022 and further to 19.64% in May 2022. However, in the month of June, the IIP tapered to 12.3% as manufacturing and mining tapered on the back of lower output and supply chain constraints. The industrial production in June increased to 12.3 percent, supported by a low base. Experts feel that IIP growth is yet to fully recover from the adverse impact of the COVID 19 pandemic and the Russia-Ukraine war, as these had led to supply chain constraints and monetary tightening. However, the IIP appears to be on a positive growth trajectory now. For FY23 till date, mining grew at 9.0%, manufacturing at 12.7%, and electricity at 17.1%. Economists believe that India’s economy grew in a range between 14.5 percent and 16 percent in the first quarter of the financial year 2022-23.