India's industrial production rises 3.1% in May 2019

12 out of 23 industry groups in the manufacturing sector shows positive growth

India's industrial production (base year 2011-12=100) rose at slower pace of 3.1% in May 2019, while showing moderation in growth from a six-month high of 4.3% in April 2019. However, the industrial production growth for April 2019 has been revised sharply upwards to 4.3% from 3.4% as reported provisionally.

The manufacturing sector output increased 2.5%, while showing moderation in growth from 4.0% increase in April 2019. The mining sector production growth also eased to 3.2% in May 2019. On the other hand, the electricity generation growth has accelerated to seven-month high of 7.4% in May 2019, showing improvement in growth for fourth straight month.

As per the use-based classification, the output of capital goods rose at slower pace of 0.8% in May 2019, while the output of intermediate goods moved up mere 0.6%. The output of primary goods also rose at slower pace of 2.5%. However, the infrastructure/ construction goods output improved 5.5% in May 2019. Within the consumer durables, the output of consumer non-durables increased 7.4%, but that of consumer durables fell 0.1% in May 2019.

In terms of industries, 12 out of 23 industry groups in the manufacturing sector have shown positive growth during the month of May 2019 as compared to the corresponding month of the previous year.

The industry group wood and products of wood and cork, except furniture; manufacture of articles of straw and plaiting materials has shown the highest positive growth of 24.8% followed by 15.9% in food products and 9.4% in computer, electronic and optical products. On the other hand, the industry group paper and paper products has shown the highest negative growth of (-) 12.2% followed by (-) 9.9% in furniture and (-) 8.7% in fabricated metal products, except machinery and equipment.

The cumulative industrial production increased 3.7% in April-May FY2020 compared with 4.2% growth in April-May FY2019. The manufacturing sector growth eased to 3.2% in April-May FY2020 from 4.2% growth in the corresponding period last year. The mining output growth moderated to 4.1%, while electricity generation output growth improved to 6.7% in April-May FY2020.

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