India's industrial production declines 1.9% in October 2016

Twelve out of 22 industry groups in the manufacturing sector shows negative growth in October 2016

India's industrial production declined 1.9% in October 2016 over October 2015, against strong 9.9% growth recorded in October 2016. The manufacturing sector's production declined 2.4%, while mining output also fell 1.1%, contributing to the decline in industrial production. However, electricity generation rose at moderate pace of 1.1% in October 2016.

The growth of IIP and the manufacturing sector continued to be affected by the sharp plunge in output of rubber- insulated cables (that carry a marginal weight in the IIP), excluding which the IIP grew 2% in October 2016.

As per the use-based classification, the basic goods output improved 4.1% in October 2016 over a year ago, while the output of intermediate goods moved up 2.9%. However, the consumer goods output declined 1.6%, while that of capital goods continued to record sharp decline of 25.9% in October 2016. Within consumer goods, the production of consumer durables rose 0.2%, while that of consumer non-durables declined 3% in October 2016.

The IIP growth in September 2016 has been revised marginally downwards to 0.67% in the first revision compared with 0.73% reported provisionally. Meanwhile, the growth in June 2016 has also been revised marginally downwards to (-) 2.55% at the final revision from first revision of (-) 2.49% and (-) 2.44% reported provisionally.

In terms of industries, twelve out of the twenty two industry groups in the manufacturing sector have shown negative growth during the month of October 2016 as compared to the corresponding month of the previous year. The industry group 'Electrical machinery & apparatus' has shown the highest negative growth of (-) 58.3% followed by (-) 29.5% in 'Office, accounting and computing machinery' and (-) 12.3% in 'Wood and products of wood & cork except furniture; articles of straw & plating materials'.

On the other hand, 'Coke, refined petroleum products & nuclear fuel' has shown the highest positive growth of 18.4% followed by 7.9% in 'Motor vehicles, trailers & semi-trailers' and 7.7% in 'Basic metals'.

Some important items showing high negative growth during the current month over the same month in previous year include 'Cable, Rubber Insulated' (-) 92.9%, 'H R Sheets' (-) 44.1%, 'Woollen Carpets' (-) 41.9%, 'Sugar Machinery' (-) 36.4%, 'Leather Garments' (-) 29.0%, 'Kerosene' (-) 27.0%, 'Boilers' (-) 23.8% and 'Aluminium wires and extrusions' (-) 21.3% .

Some important items that have registered high positive growth include 'Ship building and repairs' (87.5%), 'Electric Sheets' (72.7%), 'Aviation Turbine Fuel' (54.4%), 'H R Coils/ Skelp' (48.6%), 'Plastic Machinery including Moulding Machinery' (48.0%), 'Furnace Oil' (44.7%), 'Instant Food Mixes (Ready to eat)' (40.4%), 'Petroleum Coke' (28.8%), 'Naphtha' (27.2%), 'Liquid Petroleum Gas' (22.3%) and 'Petrol' (22.2%).

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