India's industrial production rises 5.1% in May, fastest in five months on electricity surge: IIP

📌 Summary:

• India's industrial output (IIP) rose 5.1% in May — the fastest in five months — up from 4.9% in April, per MoSPI data
• Electricity production surged 11.1% (renewable +18%, non-renewable +8.8%) as high temperatures boosted power demand; gas supply fell 7.1% (West Asia crisis impact), so 'electricity & gas' rose 9.9%
• Manufacturing (>75% of IIP) grew 5.5% (down from 6.1% in April); 16 of 23 categories rose; electrical equipment +20.8% and motor vehicles +14.5% led, while leather and apparel contracted
• Mining fell 1.6%; water supply/sewerage rose 5.5%
• Use-based: capital goods +12.9%, infrastructure goods +5.9%, intermediate +5.8%, primary +2.6%; consumer durables +7.2%, non-durables +3.6%
• Risks flagged: elevated war-risk premiums and input-cost pressure even if Hormuz shipping resumes; weak monsoon could dampen rural demand; this is the second print in the new (2022-23 base) IIP series

🎯 UPSC Relevance: GS3 Economy — industrial growth trends, energy-industry linkage, external shocks (West Asia) on input costs.

📝 Prelims Facts:

• IIP is released by MoSPI; manufacturing has the largest weight (>75%)
• Use-based classification: primary, capital, intermediate, infrastructure, consumer durables/non-durables
• New IIP base year: 2022-23

🔑 Key Term: Index of Industrial Production (IIP) — a composite indicator measuring short-term changes in the volume of industrial output (mining, manufacturing, electricity).