India's industrial production improves 7.1% in December 2017

Capital goods output jumps 16.4% in December 2017

India's industrial production (base year 2011-12=100) continued to record strong growth for second straight month at 7.1% in December 2017 over December 2016, while the growth figure for November 2017 has revised upwards to 8.8% from 8.4% reported earlier.

The manufacturing sector's production surged 8.4% in December 2017, supporting overall growth in industrial production. The mining output growth also improved 1.2% in December 2017, while the electricity generation moved up 4.4% in December 2017, contributing to the improvement in overall industrial production growth in December 2017.

As per the use-based classification, primary goods output rose at higher pace of 3.7% in December 2017 over a year ago, while the output of capital goods surged 16.4% in December 2017. The output of intermediate goods galloped 6.2%. The output of Infrastructure/ construction goods moved up 6.7%, while that of consumer non-durable durables surged 16.5%. Further, the output consumer durable goods also rose 0.9% in December 2017.

In terms of industries, sixteen out of the twenty three industry groups in the manufacturing sector have shown positive growth in December 2017.The industry group manufacture of other transport equipment has shown the highest positive growth of 38.3%, followed by 33.6% in manufacture of pharmaceuticals, medicinal chemical and botanical products and 29.8% in manufacture of computer, electronic and optical products. On the other hand, the industry group manufacture of tobacco products has shown the highest negative growth of (-) 28.2% followed by (-) 22.3% in other manufacturing and (-) 14.9% in manufacture of electrical equipment.

Some important item groups showing high positive growth during the current month over the same month in previous year include bodies of trucks, lorries and trailers (254.1%), API & formulations of hypo-lipidemic agents, anti-hypertensive (250.4%), ship building and parts thereof (144.1%), digestive enzymes and antacids (88.4%), meters (electric and non-electric) (77.1%),separators including decanter centrifuge (67.8%), axle (48.7%), commercial vehicles (40.6%), two-wheelers (motorcycles/ scooters) (36.0%) and cement- all types (20.4%).

Some important item groups that have registered high negative growth include electric heaters (-) 91.8%, jewellery of gold (-) 72.1%, hand tools (-) 63.2%, other tobacco products (-) 50.0%, plastic jars, bottles and containers (-)3 8.1%, bags/ pouches of hdpe/ ldpe (plastic) (-) 35.6%, medical/ surgical accessories (-) 34.3%, plastic components of packing/ closing/ bottling articles & of electrical fittings (-) 28.3%, material handling, lifting and hoisting equipment (-) 27.7%, paper of all kinds excluding newsprint (-) 26.8%, telephones and mobile instruments (-) 25.7% and readymade garments, knitted (-) 22.5%.

The cumulative industrial production growth has eased to 3.7% in April-December 2017 compared with 5.1% growth in April-December 2016. The manufacturing sector growth has moderated to 3.7% in April-December 2017 from 5.1% growth in the corresponding period last year. The electricity generation output also rose at moderated pace of 5.1% and mining output growth eased to 2.8% in April-December 2017.

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