By Shubham Batra
NEW DELHI, July 28 (Reuters) – India’s industrial output grew 7.3% in June, its fastest pace since July 2024, data showed on Tuesday, driven by strong manufacturing activity on increased government spending and continued expansion in electricity generation.
Economists polled by Reuters had expected industrial output growth to accelerate to 5.7% last month from a revised 5.0% in May.
“It’s a better-than-expected print. We broadly expect the momentum to hold going forward on sustained consumption,” said Gaura Sen Gupta, chief economist at IDFC First Bank.
In May, the government shifted to producer prices from wholesale prices for calculating factory output.
KEY NUMBERS
• Manufacturing output grew 7.8% year-on-year in June against a revised growth of 5.2% in May.
• Electricity generation rose 10.6% year-on-year in June against a revised increase of 10.3% a month earlier.
• Mining activity climbed 1% year-on-year in June against a revised 1.4% fall in May.
• Output of consumer durables, including cars and phones, rose 7.7% year-on-year in June against a revised 8% increase a month earlier.
• Capital goods output rose 14.2% year-on-year in June against a revised 15.5% increase in May.
• Industrial output in April-June grew 5.8%, compared to an increase of 3.4% a year earlier.
(Reporting by Shubham Batra in New Delhi; Editing by Harikrishnan Nair and Eileen Soreng)
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