Industrial production growth moderates to 3.2% in May 2018

13 out of 23 manufacturing industry groups show positive production growth in May 2018

India's industrial production (base year 2011-12=100) rose at seven-month low pace of 3.2% in May 2018 over May 2017, while showing moderation in growth from 4.8% increase in the previous month. The manufacturing sector's production growth decelerated to 2.8%, causing dip in overall industrial production growth in May 2018. On the other hand, the mining output has improved at higher pace of 5.7% and electricity generation output growth also accelerated 4.2% in May 2018.

As per the use-based classification, capital goods output increased 7.6% in May 2018 over a year ago, while the output of Infrastructure/ construction goods improved 4.9% in May 2018, The output of primary goods also moved up 5.7% and intermediate goods rose 0.9%. The output of consumer durables increased 4.3%, but that of consumer non-durable durables declined 2.6% in May 2018.

In terms of industries, thirteen out of the twenty three industry groups in the manufacturing sector have shown positive growth during the month of May 2018 as compared to the corresponding month of the previous year. The industry group 'manufacture of computer, electronic and optical products' has shown the highest positive growth of 27.0% followed by 21.1% in 'manufacture of motor vehicles, trailers and semi-trailers' and 13.2% in 'manufacture of furniture'. On the other hand, the industry group 'other manufacturing' has shown the highest negative growth of (-) 31.9% followed by (-) 15.6% in 'manufacture of tobacco products' and (-) 12.8% in 'manufacture of wearing apparel'.

The cumulative industrial production increased 4.0% in April-May FY2019 compared with 3.0% growth in April-May FY2018. The manufacturing sector growth has improved to 4.0% in April-May FY2019 from 2.7% growth in the corresponding period last year. The mining output growth also improved to 4.9%, while electricity generation output rose at moderated pace of 3.1% in April-May FY2019.

Some important item groups showing high positive growth during the current month over the same month in previous year include sugar 889.7%, api & formulations of hypo-lipidemic agents incl. anti-hyper-triglyceridemics (e.g. simvastatin, atorvastatin, etc); anti-hypertensive 145.6%, commercial vehicles 72.6%, stainless steel utensils 61.7%, npk fertilizers 38.3%, steroids and hormonal preparations (including anti-fungal preparations) 29.6% and full-cream/ toned/ skimmed milk, whether or not chilled 23.4%.

Some important item groups that have registered high negative growth include jewellery of gold (studded with stones or not) 69.9%, bags/ pouches of hdpe/ ldpe (plastic) 44.4%, copper electrodes 42.3%, paper of all kinds excluding newsprint 40.9%, material handling, lifting and hoisting equipment 39.9%, copper bars, rods & wire rods 39.6% and fragrances & oil essentials 36%.

Some important item groups contributing positively to the overall industrial production growth in the current month in basis points were mining 67 bps, scientific instruments/ apparatus for drawing, calculating and measurement 50 bps, diesel 49 bps, electricity 42 bps and commercial vehicles 38 bps.

Some important item groups contributing negatively to the overall industrial production growth were digestive enzymes and antacids (incl. ppi drugs) (-) 95 bps, jewellery of gold (studded with stones or not) (-) 30 bps, copper bars, rods & wire rods (-) 22 bps, separators including decanter centrifuge (-) 17 bps and readymade garments, knitted (-) 14 bps.

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