IIP growth recovers to five-months high of 3.8% in November 2014

Sixteen (16) out of the twenty-two (22) industry groups in the manufacturing sector shows positive growth

India's Index of industrial production (IIP) increased at five-months high pace of 3.8% in November 2014, recovering from the sharpest pace of decline in three-years at (-) 4.2% recorded in October 2014. The manufacturing sector's output growth rebounded to 3.8% in November 2014, snapping the largest decline in the last five-and-a-half years at 7.4% recorded in October 2014.

The mining sector as well as electricity generation posted a healthy growth in output in November 2014 over November 2013. The mining sector output increased 3.4%, while electricity generation surged at a double-digit pace of 10% in November 2014.

As per used-based classification, the output of basic goods increased 7% in November 2014 over a year ago, with the healthy growth in the output of mining and electricity. The output of intermediate goods increased at 11-months high pace of 4.3%, while capital goods output improved 6.5%. However, the output of consumer goods continued to decline and recorded 2.2% fall in production. Within in the consumer goods, the production of consumer durables plunged 14.5%, while that of consumer non-durables improved 6%.

IIP has increased 2.2% in April-November 2014, compared with the flat output in the corresponding period of previous year. The strong growth in the basic goods output at 7.5% mainly supported the overall growth in the IIP for April-November 2014. Capital goods output increased 4.9%, while intermediate goods posted 1.8% rise in production. However, the output of consumer goods dipped 5.7% in April-November 2014, in addition to 2.7% fall recorded in FY2014. Within the consumer goods, the output of consumer non-durable rose 1.8%, but that of consumer durables dipped 15.9%.

The IIP growth for August 2014 was retained unchanged at 0.48% at its second and final revision compared with the first revision, while stands higher against 0.42% released originally. Meanwhile, the growth for October 2014 was slightly scaled up to (-) 4.19% at its first revision compared with (-) 4.25% reported provisionally.

In terms of industries, sixteen (16) out of the twenty-two (22) industry groups in the manufacturing sector showed a positive growth in November 2014 compared with the corresponding month of the previous year.

The industry group 'Wearing apparel; dressing and dyeing of fur' has shown the highest positive growth of 19.8%, followed by 17.5% in 'Motor vehicles, trailers & semi-trailers' and 12.8% in 'Fabricated metal products, except machinery & equipment'.

On the other hand, the industry group 'Radio, TV and communication equipment & apparatus' has shown the highest negative growth of (-) 60.0%, followed by (-) 26.3% in 'Office, accounting & computing machinery' and (-) 17.4% in 'Tobacco products'.

Some of the important items showing high positive growth during the current month over the same month in previous year include 'H R Sheets' (240.8%), 'Conductor, Aluminium' (115.0%), 'Air Conditioner (Room)' (53.8%), 'Sugar' (49.5%), 'Three-Wheelers (Including passenger & goods carrier)' (42.5%), 'Leather Garments' (40.3%), 'Ayurvedic Medicaments' (35.3%), 'Stampings & Forgings' (34.1%), 'Scooter and Mopeds' (30.7%), 'Stainless/ alloy steel' (26.5%), 'Cotton cloth' (23.8%), 'Rice' (23.0%) and 'Commercial Vehicles' (20.0%).

Some of the other important items showing high negative growth are: 'Telephone Instruments (incl. Mobile Phones & Accessories)' (-) 67.3%, 'Ship Building & Repairs' (-) 41.1%, 'Wood Furniture' (-) 41.1%, 'Sugar Machinery' (-) 40.9%, 'Cement Machinery' (-) 38.9%, 'Glass Sheet' (-) 30.1%, 'Generator/ Alternator' (-) 28.6%, 'Lubricating oil' (-) 27.1%, 'Cigarettes (-) 23.3% and 'Antibiotics & Its Preparations' (-) 20.7%.

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