Industrial Output Growth Hits Five-Month High of 5.1% in May
India's industrial activity accelerated to a five-month high of 5.1% in May, driven by strong performances in manufacturing, electricity, capital goods, and consumer goods sectors. The Ministry of Statistics and Programme Implementation updated the Index of Industrial Production (IIP) series, changing the base year to 2022-23 and adopting the Producer Price Index (PPI) instead of the Wholesale Price Index (WPI) for value-based outputs. This methodological change is expected to significantly impact growth figures and GDP data. While manufacturing grew 5.5%, the mining and quarrying sector contracted for the fifth consecutive month.
Key Points
- India's industrial output grew by 5.1% in May, marking a five-month high.
- The growth was primarily driven by manufacturing, electricity, capital goods, and consumer goods sectors.
- The Index of Industrial Production (IIP) series has been updated with a new base year of 2022-23.
- The methodology for IIP calculation now uses the Producer Price Index (PPI) instead of the Wholesale Price Index (WPI) for value-based outputs.
- The mining and quarrying sector experienced its fifth consecutive month of contraction, declining by 1.6%.
Exam Facts
- Industrial output growth in May was 5.1%.
- The new base year for the Index of Industrial Production (IIP) is 2022-23.
- The Producer Price Index (PPI) has replaced the Wholesale Price Index (WPI) for certain IIP calculations.
- Manufacturing sector grew by 5.5% in May.
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