According to the report, goods exports clearly showed a strong and rapid growth between April and June. Furthermore, strong domestic demand within the country remains a significant and important driver of the economy. The overall performance of the industrial sector has been strong across most sectors, although the mining and quarrying sector has been a major exception. During this period, the manufacturing sector’s growth rate also jumped significantly to an impressive 7.8 percent.
Excellent Performance of the Manufacturing Sector
This crucial manufacturing sector growth rate was only 5.2 percent last month. However, in June, 19 out of 23 manufacturing sub-sectors recorded positive and robust growth. Among these, the electrical equipment sector recorded a robust double-digit growth of 34 percent. Furthermore, the motor vehicles, trailers, and semi-trailers sectors also saw strong industrial growth of 17.5 percent.
Significant Growth in Other Key Sectors
According to the report, the country’s textile sector recorded robust and strong economic growth of 13.7 percent. The food products sector also performed well, impressing everyone with a good and stable growth of 10.8 percent. The other non-metallic mineral products sector also recorded a robust growth of 12.9 percent during this period. Capital goods production also saw a significant increase of 14.2 percent, which is a very positive and auspicious sign for the economy.
Excellent IIP Data
Total production of intermediate goods increased by 9.3 percent, and consumer durables by 7.7 percent. Additionally, production of infrastructure and construction materials increased by 7.5 percent, and that of primary goods by 4.9 percent. According to the report, the Index of Industrial Production recorded a robust growth of 5.8 percent in the first quarter of FY2027. During this period, the electrical equipment and automotive sectors experienced strong growth of 25.8 percent and 15 percent, respectively.
Monsoon and the Rural Economy
According to the Meteorological Department, the overall rainfall deficit in the country has reduced from 40 percent to 15.8 percent by July 28, 2026. However, this figure is still significantly below normal rainfall levels, which could impact the rural economy. The report states that it is too early to accurately assess the direct impact of the monsoon on rural demand. However, the improvement in Kharif crop sowing in the last few weeks is a significant and positive sign for the market.