India manufacturing output grows 7.3% in July, marking 13th straight month of expansion

India’s manufacturing output increased 7.3% in July, down from a revised 7.8% in June, according to the latest Index of Industrial Production (IIP), a monthly measure of industrial activity, released by the Ministry of Statistics and Programme Implementation. The sector recorded its 13th consecutive month of growth despite softer global demand and elevated input costs. Manufacturing accounts for about 17% of India’s GDP and has been supported by domestic demand, government infrastructure spending and a pickup in export orders. Capital goods and consumer durables led the expansion, while intermediate goods also contributed positively. Mining output rose 5.1% and electricity generation increased 4.2% in July. Overall IIP growth stood at 6.8%, compared with 7.0% in June. Strong manufacturing activity supports employment, exports and economic growth, and aligns with the Reserve Bank of India’s 7.2% GDP growth projection for the fiscal year. Economists caution that tightening global financial conditions and a possible slowdown in advanced economies could moderate growth. Gujarat, Maharashtra and Tamil Nadu continued to outperform other states, while automobiles, pharmaceuticals and electronics showed particularly strong performance. Global uncertainty and inflationary pressures remain key risks to monitor.

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