UP industrial output expands 0.4% in Sept after two months of contraction

Manufacturing, electricity bring about 0.4% rise in industrial index; country's industrial output had contracted 4.3% YoY that month

Industrial production in Uttar Pradesh expanded by 0.4 per cent in September 2019 over the corresponding month last year, owing to a robust performance by the manufacturing and electricity sectors.

Interestingly, India's industrial output had contracted 4.3 per cent year-on-year (YoY) in September 2019, according to the Index of Industrial Production (IIP). India’s industrial index had contracted by only 1.1 per cent in August 2019.

UP’s industrial output turned positive after two straight months of negative growth of 3.6 per cent each in July and August. The state had last seen positive industrial growth in June, at 3.2 per cent, beating India’s output growth of 2 per cent in the same period.

According to the Quick Estimates of Index of Industrial Production on base year 2011-12 released by the Economics and Statistical Division of the UP Planning Institute, the state's manufacturing and electricity sectors grew 2.5 per cent and 0.8 per cent, respectively. Mining was a laggard, delivering a negative growth of 13.4 per cent.

‘Quick Estimates’ are purely based on the methodology of the Central Statistical Office, Government of India and by using the data provided by various factories and departmental head offices.

According to UP Planning Institute director Arvind Kumar Pandey, the state’s Index of Industrial Production (IIP) in September stood at 117.2 per cent, which was 0.4 per cent higher than the figure in the corresponding period last year. The IIP for mining, manufacturing and electricity stood at 103.3 per cent, 118.2 per cent and 128.6 per cent, respectively in September.

The state’s industrial output index for the month of September was prepared in November on the basis of 23 distinct industrial categories, and the results have now been released in the public domain.

Of the 23 industry groups taken up for determining the index, nine manufacturing sectors returned positive figures.

The industry group ‘Manufacture of Electrical Equipment’ showed the highest positive growth of 74.5 per cent, followed by 41.0 per cent in ‘other manufacturing industries’.

On the other hand, the industry group‘ Manufacture of Motor Vehicles, Trailers and Semi Trailers’ posted a negative growth of 49.3 per cent, followed by 28.9 per cent by the ‘Manufacture of Leather and Related Products’ category.

The industrial index is also prepared on the basis of ‘use-based’ classification, namely, the indices of primary goods, capital goods, intermediate goods, infrastructure/construction goods, consumer durable goods and consumer non-durable goods.

The YoY growth rates in September for primary goods, capital goods, intermediate goods and infrastructure/construction goods stood at minus 0.3 per cent, plus 5.4 per cent, minus 4.2  per cent and minus 3.3 per cent respectively. The consumer durable and consumer non-durable reported growth matrices of minus 11.0 per cent and 11.1 per cent respectively.