India's June industrial output grows fastest in nearly two years on manufacturing boost

By Shubham Batra

NEW DELHI, ‌July 28 (Reuters) - ​India's ​industrial output grew 7.3% in June, its fastest pace since July 2024, data showed ‌on Tuesday, driven by strong manufacturing activity ⁠on increased government spending and continued expansion in electricity generation.

Economists ‌polled by Reuters had ‌expected industrial output growth to accelerate to 5.7% last month from a revised 5.0% in May.

"It's ​a better-than-expected print. We broadly expect the momentum to hold going forward on sustained consumption," ⁠said Gaura Sen Gupta, chief economist at IDFC First Bank.

In May, the ​government shifted to producer prices from wholesale prices for calculating factory output.

KEY NUMBERS

• Manufacturing ​output grew 7.8% year-on-year in ‌June against a revised growth of 5.2% in May.

• Electricity generation rose 10.6% ⁠year-on-year in June against a revised increase of 10.3% a month earlier.

• Mining activity climbed 1% year-on-year ⁠in June against a revised 1.4% fall in May.

• Output of ​consumer durables, including cars and phones, rose 7.7% year-on-year in June against a revised 8% increase a month earlier.

• ‌Capital goods output rose 14.2% year-on-year in June against a revised 15.5% increase ‌in May.

• Industrial output in April-June grew 5.8%, ⁠compared to an increase ‌of 3.4% a ​year earlier.

(Reporting by Shubham Batra in New Delhi; Editing by Harikrishnan Nair and Eileen ‌Soreng)

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