Good news on the economic front! Industrial production registered a growth of 19.6 percent with a sharp jump

Highlights

In May, the country’s industrial production registered a growth of 19 percent.
Manufacturing, power and mining sectors performed the best.
It was 27.6 percent in May 2021.

New Delhi. The National Statistical Office (NSO) has released the latest figures of industrial production. These are showing signs of a good recovery in the Indian economy. According to the data released by NSO, the country’s industrial production index (Index of Industrial Production) has grown at a rate of 19.6 per cent in May 2022. This improvement in the growth rate is mainly responsible for the good performance of the manufacturing, power and mining sectors.

This is the highest growth of IIP in a year. NSO has released these figures today i.e. on July 12. However, this is about 8 percent less than the same time last year. Industrial production was 27.6 percent in May 2021. However, even then and this time too, the low base was believed to be the main culprit.

Also read- Effect of increasing repo rate – Retail inflation down by 0.43% in June but still out of range, which products became cheaper?

how much growth in which sector
According to the latest data, the growth rate of the country’s manufacturing sector in May 2022 has been 20.6%. During this period, the output of the mining sector grew at a rate of 10.9 percent. At the same time, an increase of 23.5 percent has been registered in power generation. Earlier in April 2022, mining production increased by 7.8 percent and electricity generation by 11.8 percent. On the basis of usage, there has been a growth of 17.7 percent in primary goods, 54 percent in capital goods, 17.9 percent in intermediate goods, 18.2 percent in infra goods, 58.5 percent in consumer durables.

Expert Opinion
Nikhil Gupta, Chief Economist, MoFSL Group, has said that this is not in line with the growth projections in the IIP. He has said that more growth was being estimated than this, so it is not surprising to see the figures. He has said that these figures have come due to low base. According to Nikhil, on the whole, no effect of monetary policy has been seen on these figures.

Also read- Dollar strengthened, Indian currency under pressure, Rupee closed at a new record low of 79.60

Some relief in retail inflation
On the inflation front, the common man has got some relief in June. On Tuesday, the government released the Consumer Price Index (CPI) based retail inflation data. According to the data, the retail inflation rate in June stood at 7.01%. This is 0.43 percent less than May’s 7.04. Let us tell you that this is the sixth consecutive month when the inflation rate has exceeded the RBI’s upper limit of 6%.

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