Industrial production declines 2.2% in June 2013

Industrial production fall revised up to 2.8% for May 2013 from -1.6%, while that for March 2013 revised up to 3.5% from 2.5% reported earlier

India's industrial production further declined 2.2% in June 2013 snapping 1.6% fall in May 2013. The continuous decline in the output of mining sector remained the major drag on the growth of industrial production, while the output of manufacturing sector declined in June 2013 also.

The output mining and manufacturing sector declined 4.1% and 2.2%, respectively in June 2013. However, the electricity generation showed no change in June 2013 over June 2012, restricting further decline in the output of industrial production in June 2013.

The industrial production growth for the month of May 2013 has been revised upwards to (-2.8%) from (-1.6%) reported earlier, while the growth for the month of March 2013 has been scaled up to 3.5% from 2.5% reported earlier.

In terms of industries, thirteen (13) out of the twenty two (22) industry groups in the manufacturing sector have shown negative growth during the month of June 2013 as compared to the corresponding month of the previous year. The industry group 'Furniture; manufacturing n.e.c.' has shown the highest negative growth of 23.8% followed by 14.2% in 'Medical, precision & optical instruments, watches and clocks' and 13.7% in 'Motor vehicles, trailers & semi-trailers'. On the other hand, the industry group 'Wearing apparel; dressing and dyeing of fur' has shown a positive growth of 31.8% followed by 7.6% in 'Chemical and chemical products' and 7.2% in 'Electrical machinery & apparatus n.e.c.'

As per Use-based classification, the growth rates in June 2013 over June 2012 are (-) 1.9% in Basic goods, (-) 6.6% in Capital goods and 1.1% in Intermediate goods. The Consumer durables and Consumer non-durables have recorded growth of (-) 10.5% and 5.0% respectively, with the overall growth in Consumer goods being (-) 2.3%.

Some of the important items showing high negative growth during the current month over the same month in previous year include 'Cigarettes' [(-) 25.1%], 'Grinding Wheels' [(-) 38.3%], 'Copper Metal Cathode' [(-) 72.5%], 'Copper and Copper Products' [(-) 67.9%], 'Boilers' [(-) 25.2%], 'Heat Exchangers' [(-) 59.2%], 'Earth Moving Machinery' [(-) 23.7%], 'Sugar Machinery' [(-) 49.9%], 'Plastic Machinery Incl. Moulding Machinery' [(-) 25.3%] and 'Gems and Jewellery' [(-) 32.6%].

Some of the other important items showing high positive growth are: 'Rice' (25.0%), 'Aerated Water and Soft Drinks' (28.2%), 'Apparels' (33.3%), 'Leather Garments' (25.5%), 'Di Ammonium Phosphate (DAP)' (164.7%), 'Ethylene' (34.1%), 'Polypropylene' (32.1%), 'Vitamins' (54.7%), 'PVC Pipes and Tubes' (30.0%), 'Cable, Rubber Insulated' (54.3%) and 'Three-Wheelers (including passenger & goods carrier)' (35.9%).

Powered by Capital Market - Live News