Industrial production growth eases to 0.5% in July 2014

Growth figures revised upwards to 3.7% for April 2014 and to 3.9% for June 2014

India's Index of industrial production (IIP) growth moderated to 0.5% in July 2014, showing moderation in the pace of growth from 3.9% (revised) increase recorded in the previous month of June 2014. The moderation in the IIP growth in July 2014 from July 2014 was mainly contributed by 1% decline in the manufacturing sectors output. On the other hand, the mining sector output increased 2.1%, while the electricity generation posted double-digit growth for second straight month at 11.7% in July 2014.

As per the used based classification, the output of basic goods increased 7.6% in July 2014, with the healthy growth in electricity generation and mining output. The output of intermediate goods improved 2.6%. However, the capital goods output declined 3.8% in July 2014, snapping growth for last three months. The output of consumer goods also declined 7.4% in July 2014, as the production of consumer durable dipped 20.9% in July 2014. Within the consumer goods group, the output of consumer non-durable posted 2.9% growth in July 2014.

The IIP growth for the month of April 2014 has been revised upwards to 3.72% at its second and final revision compared with 3.42% at its first revision and 3.36% released originally/provisionally. Meanwhile, the growth for the month of June 2014 has been scaled up to 3.94% at its first revision compared with 3.4% reported provisionally.

In terms of industries, twelve (12) out of the twenty-two (22) industry groups in the manufacturing sector have shown positive growth during the month of July 2014, as compared to the corresponding month of the previous year.

The industry groups 'Other transport equipment' has shown the highest positive growth of 17.1%, followed by 12.3% in 'Basic metals' and 11.8% in 'Other non-metallic mineral products'.

On the other hand, the industry group 'Radio, TV and communication equipment & apparatus' has shown the highest negative growth of (-) 58.3%, followed by (-) 26.0% in 'Office, accounting & computing machinery' and (-) 17.4% in 'Furniture; manufacturing'.

Some of the important items showing high positive growth during the current month over the same month in previous year include, 'Stainless/ alloy steel' 108.7%, 'Relays, Fuses and Switchgears' 72.9%, 'Vitamins' 68.9%, 'Air Conditioner Room' 58.3%, 'Plastic Machinery Incl. Moulding Machinery' 45.9%', 'Ayurvedic Medicaments' 39.0%, 'Fruit Pulp' 37.8%, 'Scooter and Mopeds' 35.0%, 'Fasteners Excl. Zip-Fasteners' 28.2%, 'Colour TV Sets' 27.3%, 'Three-Wheelers including passenger & goods carrier' 22.2% and 'Biaxially Oriented Polypropylene BOPP film' 21.3% etc.

Some of the other important items showing high negative growth are, 'Telephone Instruments incl. Mobile Phones & Accessories' (-) 67.2%, 'Sugar' (-) 60.3%, 'Aluminium Conductor' (-) 46.1%, 'Computers' (-) 36.9%, 'Generator/ Alternator' (-) 36.9%, 'Sacking' (-) 36.0%, 'Gems and Jewellery' (-) 32.2%, 'Sugar Machinery' (-) 31.1%, 'Wood Furniture' (-) 30.3% and 'Cigarettes' (-) 23.8%.

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