IIP growth improves to four months high of 3.8% in June 2015

IIP growth remains nearly flat at 3.2% April-June 2015 quarter

India's Index of industrial production (IIP) rose at an accelerated pace of 3.8%, a four month high level, in June 2015 over a year ago compared with the revised growth of 2.5% in May 2015. The IIP growth for May 2015 was scaled down to 2.5% in the first revision compared with 2.7% reported provisionally. Meanwhile, the growth in March 2015 that was scaled up at first revision to 2.5% from 2.1% reported provisionally, has been retained nearly unchanged at 2.5% in final revision.

An improvement in the pace of growth of industrial production was driven entirely by more than doubling of growth in the output of manufacturing sector to 4.6% in June 2015 from 2% in May 2015. On the other hand, the mining sector output declined 0.3% after four months of consistent growth. The electricity generation growth eased to 1.3% in June 2015 from 6% in May 2015.

As per the use-based classification, the basic goods output increased 5.1% in June 2015 over a year ago. However, the output of capital goods declined 3.6%, while the intermediate goods output growth slowed down to 0.8%.The output of consumer goods increased at 32-month high pace of 6.6% in June 2015. Within consumer goods, the production of consumer durables zoomed 16%, while that of consumer non-durables also improved 1.3% in June 2015.

Industrial production growth has remained nearly flat at 3.2% in April-June 2015 compared with 3.3% in the January-March 2015 quarter.

In terms of industries, sixteen (16) out of the twenty two (22) industry groups in the manufacturing sector showed positive growth in June 2015 as compared with the corresponding month of the previous year.

The industry group 'Furniture; manufacturing' has shown the highest positive growth of 83.7%, followed by 27.6% in 'Wearing apparel; dressing and dyeing of fur' and 21.0% in 'Wood and products of wood & cork except furniture; articles of straw & plating material'.

On the other hand, the industry group 'Publishing, printing & reproduction of recorded media' has shown the highest negative growth of (-) 11.4%, followed by (-) 10.0% in 'Electrical machinery & apparatus' and (-) 8.7% in 'Radio, TV and communication equipment & apparatus'.

Some of the important items showing high positive growth during the current month over the same month in previous year include H R Sheets' 191.3%, 'Gems and Jewellery' 156.8%, 'Conductor, Aluminium' 111.6%, 'Woollen Carpets' 97.1%, 'Wood furniture' 63.5%, 'Transformers small' 52.4%, 'Plastic machinery including moulding machinery' 40.1%, 'Stainless/ alloy steel' 37.9%, 'Pens of all kind' 34.5%, 'Apparels' 29.0%, 'Block Board' 24.9%, 'Carbon Steel' 23.8% and 'Leather Garments' 22.1%.

Some of the other important items showing high negative growth are: 'Air & Gas Compressors' (-) 51.3%, 'Instant Food Mixes (Ready to eat)' (-) 42.7%, 'Grinding Wheels' (-) 35.5%, 'Linear Alkyl Benzene' (-) 35.1%, 'Cable, Rubber Insulated' (-) 28.0%, 'Aerated Waters and Soft Drinks' (-) 26.0%, 'Tractors (complete)' (-) 23.4% and 'Furnace Oil' (-) 22.5%.

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