IIP rises at 34-months high pace of 6.4% in August 2015

Favourable base effect boost IIP growth in August 2015

India's Index of Industrial Production (IIP) accelerated to 34-months high of 6.4% in August 2015 over a year ago compared with the revised growth of 4.1% in July 2015. The favourable base effect has boosted the IIP growth in August 2015, as the IIP growth was subdued at 0.5% in August 2014. The output of the manufacturing sector surged 6.9% in August 2015, against 1.1% decline in August 2014. Meanwhile, the mining sector output improved 2.9% in August 2015, showing acceleration from 1.2% growth in August 2014. The electricity generation growth has eased to 5.6% in August 2015 against 12.9% surge in August 2014.

As per the use-based classification, the basic goods output increased 3.4% in August 2015 over a year ago. Meanwhile, the output of capital goods shot up 21.9% against (-) 10% dip in August 2014. The intermediate goods output improved 2.6%, while the growth of consumer goods output also galloped to 6.8% in August 2015. Within consumer goods, the production of consumer durables surged 17%, while that of consumer non-durables rose 0.4% in August 2015.

Industrial production growth has improved at higher pace of 4.1% in April-August 2015 compared with 3% in the corresponding period last year.

In terms of industries, fifteen (15) out of the twenty-two (22) industry groups in the manufacturing sector have shown positive growth during the month of August 2015 as compared to the corresponding month of the previous year.

The industry group 'Furniture; manufacturing' has shown the highest positive growth of 90.8%, followed by 40.8% in 'Electrical machinery & apparatus' and 19.5% in 'Wearing apparel; dressing and dyeing of fur'.

On the other hand, the industry group 'Tobacco products' has shown the highest negative growth of (-) 9.5%, followed by (-) 9.1% in 'Publishing, printing & reproduction of recorded media' and (-) 9.0% 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 'Gems and Jewellery' 192.3%, 'Sugar Machinery' 140.8%, 'H R Sheets' 129.5%, 'Fruit Pulp' 93.4%, 'Cable, Rubber Insulated' 72.1%, 'Vitamins' 37.6%, 'Aluminium wires & extrusions' 28.9%, 'Conductor, Aluminium' 25.6%, 'Carbon Steel' 23.6%, 'Steel Structures' 22.5% and 'Liquefied Petroleum Gas' 21.2%.

Some of the other important items showing high negative growth are: 'Instant Food Mixes (Ready to eat)' (-) 42.9%, 'Grinding Wheels' (-) 37.8%, 'CR Sheets' (-) 28.2%, 'Stainless/ alloy steel' (-) 27.0%, 'Furnace Oil' (-) 26.5%, 'Purified terephthalic acid' (-) 25.7%, 'Colour TV sets' (-) 22.9%, 'Aerated Waters and Soft Drinks' (-) 22.4% and 'Air Conditioner (Room)' (-) 20.5%.

The IIP growth in July 2015 has been scaled down to 4.1% in the first revision compared with 4.2% reported provisionally. Meanwhile, the growth in May 2015 has been retained unchanged at 2.5% at final revision against the first revision, while remains lower from 2.7% reported provisionally.

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