IIP declines 1.2% in February 2017

Industrial production rises 0.45% in April-February FY2017

India's industrial production declined 1.2% in February 2017 over February 2016, snapping 3.3% growth recorded in January 2017. The manufacturing sector's production dipped 2% in February 2017, mainly contributing to the dip in industrial production. The mining output increased 3.3%, while the electricity generation rose 0.3% in February 2017.

In terms of industries, 15 out of the 22 industry groups in the manufacturing sector have shown negative growth during the month of February 2017 as compared to the corresponding month of the previous year.

Industrial production rose 0.45% in April-February FY2017, compared with 2.61% growth in the corresponding period last year. The manufactured product sector output declined 0.3%, while the mining and electricity generation improved 1.6% and 4.6% in April-February FY2017.

As per the use-based classification, the basic goods output improved 2.4% in February 2017 over a year ago, while the output of capital goods declined 3.4%. The consumer goods output dipped 5.6%, while the output of intermediate goods also fell 0.2% in February 2017. Within consumer goods, the production of consumer durables declined 0.9%, while that of consumer non-durables plunged 8.6% in February 2017 over February 2016.

The IIP growth in January 2017 has been revised upwards to 3.3% in the first revision compared with 2.7% growth reported provisionally. Meanwhile, the growth in November 2016 has been revised marginally downwards to 5.6% at final revision.

The industry group 'Tobacco products' has shown the highest negative growth of (-) 42.8% followed by (-) 21.7% in 'Food products and beverages' and (-) 20.6% in 'Office, accounting and computing machinery'. On the other hand, the industry group 'Electrical machinery & apparatus n.e.c.' has shown the highest positive growth of 17.4% followed by 10.7% in 'Wearing apparel; dressing and dyeing of fur' and 9.9% in 'Basic metals'.

Some important items that have registered high negative growth include 'woollen carpets' (-) 66.4%, 'plastic machinery including moulding machinery' (-) 52.2%, 'ship building and repairs' (-) 49.7%, 'sugar machinery' (-) 47.8%, 'sugar' (-) 41.6%, 'molasses' (-) 39.0%, 'cigarettes' (-) 37.7%, 'aluminium conductor' (-) 29.3%, 'three-wheelers (including passenger and goods carrier)' (-) 24.5% and 'leather garments' (-) 22.0%.

Some important items showing high positive growth during the current month over the same month in previous year include 'cable, rubber insulated' 241.2%, 'cement machinery' 116.5%, 'electric sheets' 90.1%, 'HR coils/ skelp' 29.1%, 'antibiotics and it's preparations' 25.6%, 'biaxially oriented polypropylene bopp film' 25.5% and 'stainless/ alloy steel' 24.2%.

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