Industrial production growth improves to five-month high of 4.3% in August 2017

Cumulative industrial production rises 2.2% in April-August 2017

India's industrial production (base year 2011-12=100) improved at five months high pace of 4.3% in August 2017 over August 2016, while showing sharp improvement in growth from 0.9% increase in July 2017. The manufacturing sectors production improved 3.1% in August 2017, snapping decline in output for last two straight months. The electricity generation increased at improved pace of 8.3% and mining output also gained 4.3% in August 2017. The growth for July 2017 has been revised downwards to 0.9% from 1.2% reported earlier.

As per the use-based classification, primary goods output improved 7.1% in August 2017 over a year ago, while the output of capital goods rebounded after four months of decline at 5.4% in August 2017. The output of consumer durable goods also improved 1.6%, snapping decline for last two months. The output of consumer non-durable durables improved 6.9%, while that of Infrastructure/ construction goods moved up 2.5%. However, the intermediate goods output continued to decline for third straight month at 0.2% in August 2017 over August 2016.

In terms of industries, 10 out of the twenty three industry groups in the manufacturing sector have shown positive growth during the month of August 2017 as compared to the corresponding month of the previous year.

The industry group computer, electronic and optical products has shown the highest positive growth of 24.9%, followed by 16.5% in pharmaceuticals, medicinal chemical and botanical products and 11.1% in other transport equipment. On the other hand, the industry group furniture has shown the highest negative growth of (-) 16.0%, followed by (-) 15.1% in tobacco products and (-) 11.4% in Printing and reproduction of recorded media.

Some important items showing high positive growth during the current month over the same month in previous year include meters 63.3%, separators including decanter centrifuge 56.6%, digestive enzymes and antacids 33.7%, anti-pyretic, analgesic/anti-inflammatory api & formulations 29.6%, pipes, tubes & casing of steel/ iron 27.4%, axle 26.0%, telephones and mobile instruments 23.2% and full-cream/ toned/ skimmed milk, whether or not chilled 22.4%.

Some important items that have registered high negative growth include anti-malarial drug (-) 68.4%, jewellery of gold (-) 46.0%, plastic jars, bottles and containers (-) 42.0%, tooth paste (-) 39.9%, other tobacco products (-) 38.2%, electrical apparatus for switching or protecting electrical circuits (-) 33.7% and palm oil refined (-) 29.3%.

Industrial production rose 2.2% in April-August FY2018, compared with 6% growth in the corresponding period last year. The manufactured product sector output improved 1.6%, while the mining and electricity generation moved up 3.3% and 6.1% in April-August FY2018.

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