India's industrial production growth accelerates to six-month high of 3.4% in April 2019

Capital goods and intermediate goods production growth rebounds after months of decline

India's industrial production (base year 2011-12=100) accelerated to six-months high of 3.4% in April 2019, from mere 0.4% growth recorded in the previous month. Also, the industrial production growth for March 2019 has been revised upwards to 0.4% from (-) 0.1% as reported provisionally.

The manufacturing sector output increased at improved pace of 2.8%, while recovering from 0.1% growth in March 2019 and 0.4% decline in February 2019. The mining sector production growth accelerated to 5.1% in April 2019. The electricity generation growth also surged to 6.0% in April 2019, showing improvement in growth for third straight month.

As per the use-based classification, the output of capital goods rebounded 2.5% in April 2019, while snapping consistent sharp decline for last three straight months. The output of intermediate goods bounced back 1.0% after incessant decline for five months. The output of primary goods jumped 5.2%, while the growth infrastructure/ construction goods rose at slower pace of 1.7% in April 2019. Within the consumer durables, the output of consumer non-durables increased 5.2%, while that of consumer durables also improved 2.4% in April 2019.

In terms of industries, 14 out of 23 industry groups in the manufacturing sector have shown positive growth during the month of April 2019 as compared to the corresponding month of the previous year.

The industry group wearing apparel has shown the highest positive growth of 33.6%, followed by 22.6% in wood and products of wood and cork, except furniture; articles of straw and plaiting materials and 16.3% in printing and reproduction of recorded media.

On the other hand, the industry group paper and paper products has shown the highest negative growth of (-) 12.3% followed by (-) 9.6% in fabricated metal products, except machinery and equipment and (-) 3.5% in other transport equipment.

The cumulative industrial production increased 3.6% in April-March FY2019 compared with 4.4% growth in April-March FY2018. The manufacturing sector growth rose 3.5% in April-April FY2019 from 4.7% growth in the corresponding period last year. The electricity generation output growth eased marginally to 5.2%, while mining output growth improved to 2.8% in April-March FY2019.

Powered by Capital Market - Live News