India's industrial production dips 3.8% in October 2019

18 out of 23 industry groups in the manufacturing sector shows negative growth

India's industrial production (base year 2011-12=100) declined for third straight month at 3.8% in October 2019, in addition to 4.3% dip in September 2019 and 1.4% decline in August 2019.

As per the revised data for industrial production of September 2019, the pace of decline in industrial production is retained unchanged at 4.3% compared with the figure reported provisionally.

The manufacturing sector output declined 2.1%, while electricity generation plunged 12.2% in October 2019 contributing to the overall decline in industrial production. Further, the mining sector production plunged 8.0% in October 2019.

As per the use-based classification, the output of capital goods continued to decline for tenth straight month at 21.9% in October 2019, while the output of infrastructure/ construction goods growth also declined 9.2% in October 2019. The primary goods production also declined at record high pace of 6.0% in October 2019. Within the consumer durables, the output of consumer non-durables declined 1.1%, whiile that of consumer durables dipped for fifth straight month at 18.0% in October 2019. However, the output of intermediate goods increased 22.2% in October 2019.

In terms of industries, only 5 out of 23 industry groups in the manufacturing sector have shown positive growth during the month of October 2019 as compared to the corresponding month of the previous year.

The industry group manufacture of computer, electronic and optical products has shown the highest negative growth of (-) 31.3% followed by (-) 27.9% in manufacture of motor vehicles, trailers and semi-trailers. On the other hand, the industry group manufacture of chemicals and chemical products has shown the highest positive growth of 31.8% followed by 9.4% in manufacture of basic metals.

The cumulative industrial production rose 0.5% in April-October FY2020 compared with 5.7% growth in April-October FY2019. The manufacturing sector growth eased to 0.6% in April-October FY2020 from 5.8% growth in the corresponding period last year. The mining output declined 0.4%, while electricity generation output growth decelerated to 1.6% in April-October FY2020.

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