IIP growth slows to 3.6% in September 2015

IIP growth rise at 17-quarters high pace of 4.6% in Q2FY2016

India's Index of Industrial Production (IIP) growth moderated to 3.6% in September 2015 over a year ago compared with the revised growth of 6.3% in August 2015. The IIP growth shows an improved from 2.6% growth recorded in September 2014.

The output of the manufacturing sector rose 2.6% in September 2015, against 2.6% rise in September 2014. Meanwhile, the mining sector output improved 3% in September 2015, showing acceleration from 0.1% growth in September 2014. The electricity generation also surged 11.4% in September 2015 against 3.9% rise in September 2014.

As per the use-based classification, the basic goods output increased 4% in September 2015 over a year ago. Meanwhile, the output of capital goods posted double-digit growth for third straight month at 10.5%. The intermediate goods output rose 2.1%, while the growth of consumer goods output moved up 0.6% in September 2015. Within consumer goods, the production of consumer durables improved 8.5%, while that of consumer non-durables declined 4.6% in September 2015.

Industrial production growth improved at 17-quarters high pace of 4.6% in the quarter ended September 2015 against 1.3% growth in the corresponding quarter last year.

In terms of industries, eleven (11) out of the twenty-two (22) industry groups in the manufacturing sector showed positive growth in September 2015 compared to the corresponding month of the previous year.

The IIP growth in August 2015 was scaled down to 6.3% in the first revision compared with 6.4% reported provisionally. Meanwhile, the growth in June 2015 was reduced to 4.2% at the final revision against the first revision from 4.4% at first revisions, while it remained above 3.8% reported provisionally.

The industry group 'Furniture; manufacturing' has shown the highest positive growth of 69.9%, followed by 21.6% in 'Electrical machinery & apparatus' and 9.8% in 'Chemicals and chemical products'.

On the other hand, the industry group 'Publishing, printing & reproduction of recorded media' has shown the highest negative growth of (-) 13.3%, followed by (-) 12.8% in 'Wearing apparel; dressing and dyeing of fur' and (-) 12.8% in 'Medical, precision & optical instruments, watches and clocks'.

Some of the important items showing high positive growth during the current month over the same month in previous year include 'Gems and Jewellery' 155.6%, 'Single Super Phosphate SSP' 86.5%, 'Sugar Machinery' 84.3%, 'H R Sheets' 46.1%, 'Polypropylene incl. co-polymer' 44.8%, 'Cable, Rubber Insulated' 37.4%, 'Generator/ Alternator' 36.7%, 'Propylene' 35.6%, 'Ethylene' 33.7%, 'Aluminium wires & extrusions' 25.0%, 'Antibiotics & its Preparations' 23.4% and 'Cigarettes' 22.4%.

Some of the other important items showing high negative growth are: 'Polythene Bags including HDPE & LDPE Bags' (-) 62.9%, 'Woollen Carpets' (-) 58.5%, 'Instant Food Mixes (Ready to eat)' (-) 47.0%, 'Heat Exchangers' (-) 38.7%, 'Ship Building & Repairs' (-) 29.7%, 'Leather Garments' (-) 29.3%, 'Furnace Oil' (-) 26.5% and 'Tractors (complete)' (-) 23.4%.

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