Index of Industrial production rises at 19-months high pace of 4.7% in May 2014

Consumer durable goods production rises in May 2014 after recording decline for last 17 sequential months

India's Index of industrial production (IIP) increased at 19-months high pace of 4.7% in May 2014. The rise in the output of manufacturing sector at 4.8% and surge in electricity generation at 6.3% in May 2014 boosted the IIP growth. Meanwhile, the mining sector output also moved up 2.7% in May 2014.

As per the used based classification, the output of basic goods advanced 6.3% in May 2014, with the healthy growth in electricity generation. The output of intermediate goods rose 2.7%, while that of capital goods improved 4.5% in May 2014. The output of consumer goods also increased 3.7% in May 2014. Within the consumer goods group, the output of consumer durable goods rebounded 3.2% in May 2014 snapping consistent decline for last 17-months. Further, the output of consumer non-durable goods also improved 3.9% in May 2014.

The IIP growth for the month of March 2014 has been retained unchanged at (-) 0.5% compared to provisional figure as well as the after first revised data availability. Meanwhile, the growth for the month of April 2014 has been scaled up slightly to 3.42% compared to 3.36% earlier.

In terms of industries, sixteen (16) out of the twenty-two (22) industry groups in the manufacturing sector have shown positive growth during the month of May 2014, as compared to the corresponding month of the previous year.

The industry group 'Furniture; manufacturing' has shown the highest positive growth of 60.0%, followed by 37.1% in 'Tobacco products' and 33.7% in 'Electrical machinery & apparatus'. On the other hand, the industry group 'Radio, TV and communication equipment & apparatus' has shown the highest negative growth of (-) 40.3%, followed by (-) 28.6% in 'Office, accounting & computing machinery' and (-) 7.4% in 'Motor vehicles, trailers & semi-trailers'.

Some of the important items showing high positive growth during the current month over the same month in previous year include 'Woollen Carpets' (167.1%), 'Cable, Rubber Insulated' (128.6%), 'Gems and Jewellery' (127.1%), 'Copper and Copper Products' (89.2%), 'Vitamins' (66.4%), 'Ayurvedic Medicaments' (64.1%), 'Stainless/ alloy Steel' (39.8%), 'Air Conditioner (Room)' (38.5%) and 'Scooter and Mopeds' (28.9%).

Some of the other important items showing high negative growth are: 'Aluminium Conductor' [(-) 60.3%], 'Lubricating Oil' [(-) 51.3%], 'Telephone Instruments (incl. Mobile Phones & Accessories)' [(-) 47.8%], 'Computers' [(-) 38.1%], 'Polythene Bags Including HDPE & LDPE Bags' [(-) 29.5%], 'Antibiotics and its preparations' [(-) 27.2%], 'Commercial Vehicles' [(-) 22.7%] and 'Boilers' [(-) 21.8%].

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