Growth in Manufacturing Lead by Consumer Durables and Basic Goods is a Positive Development for the Economy; Shows that the Economy is Firmly on the Growth Path.

The Union Finance Minister Shri Arun Jaitley said that Index of Industrial Production (IIP) for June 2015 at 3.8 per cent is the highest over the growth recorded since February 2015. He said that the growth is boosted by 4.6 per cent increase in manufacturing, while mining and electricity sectors continue to need attention. The Finance Minister was responding to IIP figures released here.

 The Finance Minister Shri Jaitley further said that the growth in manufacturing lead by consumer durables and basic goods is a positive development for the economy. He said that it shows that the economy is firmly on the growth path. Shri Jaitley said that these figures are consistent, and need to be read with the growth in indirect tax receipts. It is especially notable that simultaneously inflation has declined to 3.8 per cent with food inflation being only 2.2 per cent, he added.

 The Finance Minister further said that In terms of use based classification, consumer goods growth at 6.6 per cent has performed encouragingly. He said that the consumer durables growth is an even more encouraging at 16 per cent. Basic goods have also done appreciably well, notably in urea and complex grade fertilizers, various forms of steel, molasses and bagasse, he added.

Industrial production growth led by manufacturing signals strengthening economy amid lower inflation and improved indirect tax receipts. IIP for June 2015 recorded its strongest growth since February 2015, driven by manufacturing gains while mining and electricity lagged; manufacturing expansion was led by consumer durables and basic goods, with noted improvements in fertilizers, steel, molasses and bagasse, and these production trends coincided with lower inflation and increased indirect tax receipts.