Industrial production dips 4.2% in October 2014

Lesser working days take toll on industrial production in October 2014

India's Index of industrial production (IIP) declined, at sharpest pace in three-years, (-) 4.2% in October 2014 compared with 2.8% (revised) increase in September 2014. The manufacturing sector's output dipped to 2.5% in October 2014, recording largest decline in last five-and-half years. The decline in the industrial production was entirely contributed by the manufacturing sector. Lesser number of working days in October 2014 mainly led to sharp decline in manufacturing sectors output.

On the other hand, the mining sector as well as electricity generation posted healthy growth in output in October 2014 over October 2013. The mining sector output increased at four-year high pace, while the electricity generation also surged at strong double-digit pace of 13.3% in October 2014.

As per used-based classification, the output of basic goods increased 5.8% in October 2014, with the healthy growth in the output of mining and electricity. The output of intermediate goods declined 3.1%, while capital goods output also fell 2.3% in October 2014. Further, the output of consumer goods continued to decline and recorded sharpest decline for the current base year data (2004-05:100) at (-) 18.6% in October 2014. Within in the consumer goods, the production of consumer durables plunged 35.2%, while that of consumer non-durables surged 18.5% in October 2014 over a year ago.

The IIP growth for July 2014 was revised upwards to 0.9% at its second and final revision compared with 0.4% at its first revision and 0.5% released originally. Meanwhile, the growth for September 2014 was scaled up to 2.8% at its first revision compared with 2.5% reported provisionally.

In terms of industries, sixteen (16) out of the twenty-two (22) industry groups in the manufacturing sector showed negative growth in October 2014, compared with the corresponding month of the previous year.

The industry group 'Radio, TV and communication equipment & apparatus' has shown the highest negative growth of (-) 70.2%, followed by (-) 31.6% in 'Office, accounting & computing machinery' and (-) 24.7% in 'Furniture; manufacturing'.

On the other hand, the industry group 'Electrical machinery & apparatus n.e.c.' has shown the highest positive growth of 10.5%, followed by 9.6% in 'Wearing apparel; dressing and dyeing of fur' and 5.3% in 'Luggage, handbags, saddlery, harness & footwear; tanning and dressing of leather products'.

Some of the important items showing high negative growth are: 'Telephone Instruments (incl. Mobile Phones & Accessories)' (-) 78.3%, 'Gems and Jewellery' (-) 49.8%, 'Heat Exchangers' (-) 43.9%, 'Antibiotics & Its Preparations' (-) 40.9%, 'Sugar Machinery' (-) 38.3%, 'Wood Furniture' (-) 30.7%, 'Ethylene' (-) 29.3%, 'Tractors (complete)' (-) 29.1%, 'Steel Structures' (-) 24.3%, 'Cigarettes (-) 22.3% and 'PVC Pipes and Tubes' (-) 20.5%.

Some of the other important items showing high positive growth during the current month over the same month in previous year include 'H R Sheets' (168.2%), 'Polythene Bags Incl. Hdpe and Ldpe Bags' (81.3%), 'Vitamins' (52.6%), 'Conductor, Aluminium' (32.6%), 'Pens of All Kind' (31.0%), 'Ayurvedic Medicaments' (29.7%) and 'Stainless/ alloy steel' (20.7%).

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