India's industrial output jumps 8% in August
What's the story
India's Industrial Production Index (IIP) witnessed a significant jump of 8% in August, up from the 7.4% growth recorded in July. The surge was mainly driven by a robust performance of the manufacturing sector, which grew by an impressive 9%. The electricity and gas supply sector also contributed to this growth with a stellar increase of 12.3%, according to official data released today.
Sector performance
Manufacturing sector's consistent growth
The manufacturing sector has maintained its growth momentum for three consecutive months, each month witnessing an increase of 8% or more.
This consistency is a new record under the revamped IIP series introduced by the Indian government on June 1.
The new index has expanded its coverage to include sectors like minor minerals, rare earth minerals, gas supply, water supply and sewerage, and waste management.
Index expansion
Revamped IIP series enhancements
The revamped IIP series has also introduced more granular tracking of industrial activity.
It now includes separate indices for renewable and non-renewable electricity generation.
The index has been expanded to cover 1,042 products across 463 item groups.
The manufacturing basket was restructured with the addition of 120 new item groups and removal of 64 others.
Classification
Use-based classification categories retained
The revamped index has retained the existing six use-based classification categories in the revised series.
These are primary goods, capital goods, intermediate goods, infrastructure and construction goods, consumer durable goods, and consumer non-durable goods.
This continuity ensures a level of consistency with past data while also allowing for more detailed tracking of industrial activity.