India's index of industrial production jumps to 5.2% in May 2023, highest in three months

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power generation sector which witnessed a decline of 1.1% in April saw a marginal growth of 0.9% in May 2023 year on year. Mining output increased by 6.4% in May from 5.1% in April. As per Use-based classification, the indices stand at 149.8 for Primary Goods, 102.7 for Capital Goods, 154.1 for Intermediate Goods, and 174.7 for Infrastructure/ Construction Goods for the month of May 2023.

Further, the indices for Consumer durables and Consumer non-durables stand at 115.2 and 148.0 respectively for the month of May 2023. In May, India witnessed remarkable growth in its core sector output which contributes more than 40% of the IIP. The core sector witnessed a substantial jump of 18.1% compared to the same period last year.

This surge can be attributed to the amplified production in key industries such as cement, coal, fertilizers, and electricity, surpassing the growth rate of 8.4% recorded in April. The CPI inflation numbers for June 2023 were recorded at 4.81% which was higher than the estimations. This is the fourth month in a row when the inflation numbers are within the tolerance band of the Reserve Bank of India (RBI) of 2% to 6%.