Industrial production declines 3.2% in November 2015

Lesser number of holidays on festive season hurts industrial production in November 2015

India's Index of Industrial Production (IIP) declined 3.2% in November 2015 over a year ago, driven by high base effect with the output rising 5.2% in November 2014. Also, with the festive season holidays for the month led to lesser number of working days in November this year compared with November last year.

The output of the manufacturing sector declined 4.4% in November 2015, contributing to the decline in industrial production. Meanwhile, the mining sector output improved 2.3%, while the electricity generation rose mere 0.7% in November 2015 against 10% jump in November 2014.

As per the use-based classification, the basic goods output fell 0.7% in November 2015 over a year ago. Meanwhile, the output of capital goods plunged 24.4%. The intermediate goods output also fell 0.7%, while the growth of consumer goods output rose 1.3% in November 2015. Within consumer goods, the production of consumer durables increased 12.6%, but that of consumer non-durables declined 4.7% in November 2015.

In terms of industries, seventeen (17) out of the twenty-two (22) industry groups in the manufacturing sector showed negative growth in November 2015 compared to the corresponding month of the previous year.

The IIP growth in October 2015 was scaled up to 9.9% in the first revision compared with 9.8% reported provisionally. Meanwhile, the growth in August 2015 was retained unchanged at 6.3% at the final revision against first revisions, while remained lower compared with 6.4% reported provisionally.

The industry group 'Electrical machinery & apparatus' has shown the highest negative growth of (-) 46.5%, followed by (-) 13.8% in 'Luggage, handbags, saddlery, harness & footwear; tanning and dressing of leather products' and (-) 13.1% in 'Wood and products of wood & cork except furniture; articles of straw & plating materials'.

On the other hand, the industry group 'Furniture; manufacturing' has shown the highest positive growth of 102.1%, followed by 11.1% in 'Office, accounting & computing machinery' and 9.7% in 'Radio, TV and communication equipment & apparatus'.

Some important items showing high negative growth during the current month over the same month in previous year include 'Cable, Rubber Insulated' (-) 87.1%, 'Heat Exchangers' (-) 68.2%, 'Polythene Bags including HDPE & LDPE Bags' (-) 58.0%, 'Tractors (complete)' (-) 42.3%, 'Conductor, Aluminium' (-) 36.8%, 'Rice' (-) 27.1% and 'Three-Wheelers (including passenger & goods carrier)' (-) 23.7%.

Some other important items that have registered high positive growth include 'Gems and Jewellery' 253.7%, 'Sugar Machinery' 78.0%, 'Lubricating oil' 66.5%, 'Wood Furniture' 46.9%, 'PVC Pipes and Tubes' 31.4%, 'Transformers small' 30.2%, 'Polypropylene including co-polymer' 30.1% and 'Sugar' 25.7%.

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