New Delhi, Sep 29 India’s index of industrial production (IIP) in August showed strong growth in infrastructure and primary goods, experts said on Monday, highlighting a steady recovery in the mining, electricity, and capital-intensive sectors.
According to Hemant Jain, President of PHD Chamber of Commerce and Industry (PHDCCI), IIP grew at 4 per cent in August -- marking a seven-month high, driven by strong recovery in the mining and electricity sectors.
The mining sector grew 6 per cent in August, rebounding from a negative 7.2 per cent in July, he said.
Electricity production also picked up sharply, rising 4.1 per cent compared with just 0.6 per cent in the previous month.
The manufacturing sector grew 3.8 per cent, with 10 out of 23 industry groups at the NIC 2-digit level showing positive performance.
Within the manufacturing sector, 10 out of 23 industry groups recorded a positive growth in August this year compared to the same month of the previous year.
The top contributors were the “basic metals” segment which recorded a robust double digit at growth of 12.2 per cent and “motor vehicles, trailers and semi-trailers” which reported a healthy growth of 9.8 per cent.
“Among these, basic metals, electrical equipment, and other transport equipment industries recorded double-digit growth,” Jain added.
Use-based data revealed that consumer durables expanded by 5.2 per cent in August, recovering from negative growth in July, while infrastructure and capital goods rose an impressive 10.6 per cent.
These trends indicate a strong focus on investment-driven and primary goods sectors, even as consumer demand remains comparatively softer.
Dr. Ranjeet Mehta, Secretary General and CEO of PHDCCI, said the recent GST 2.0 reforms are expected to support a balance between investment and demand revival.
“The policy is likely to catalyse consumption while promoting sustainable growth,” he noted.
Experts believe that the strong momentum in infrastructure and primary goods provides a solid foundation for India’s industrial growth, signalling optimism for broader economic expansion in the coming months.
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