New Delhi: India’s industrial growth, based on the Index of Industrial Production (IIP), accelerated 4 per cent in August this year driven by a strong performance in the mining sector, according to data released by the Ministry of Statistics on Monday.
The industrial growth rate has accelerated for the second month in a row from a four-month high of 3.5 per cent in July which in turn had surged from 1.5 per cent in June.
The mining sector bounced back with a strong growth of 6 per cent during August compared to the same month of the previous year, reversing the contraction in output during July due to the heavy monsoon rains which had hit production.
The data showed that the manufacturing sector, which provides quality jobs for the young graduates passing out of the country’s universities and engineering institutes, registered a growth of 3.8 per cent growth in August this year over the same month of the previous year.
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.
Electricity generation also improved in August with a 4.1 per cent growth compared to the July when the sector had slowed to a marginal growth of 0.6 per cent.
The figures on use-based classification show that the production of capital goods, which comprise machines used in factories, went up by 4.4 per cent in August. This segment reflects the real investment taking place in the economy which has a multiplier effect on the creation of jobs and incomes going ahead. The production of consumer durables such as refrigerators, air conditioners and TV sets increased by 3.5 per cent during the month, reflecting the rise in demand for these products with a rise in incomes.
The infrastructure and construction sector clocked a double digit surge of 10.6 per cent in August compared with the same month of the previous year on the back of big ticket government projects being implemented in the highways, railways and ports sectors.
(IANS)
