Industrial production growth moderates to five month low of 4.4% in March 2018

Industrial production growth eases to 4.3% in FY2018 from 4.6% in FY2017

India's industrial production (base year 2011-12=100) moderated to five-month low of 4.4% in March 2018 over March 2017, after healthy growth in the range of 7% to 8.5% for last four straight months. The deceleration in industrial production growth has moderated mainly driven by moderation in the manufacturing sector's production growth to 4.4% in March 2018. However, the growth of electricity generation output accelerated to 5.9%, while the mining output rebounded 2.8% in March 2018 after 0.4% decline in February 2018.

As per the use-based classification, capital goods output declined 1.8% in March 2018 over a year ago, snapping strong double digit growth for last three straight months. The output of Infrastructure/ construction goods rose at moderated pace of 8.8% in March 2018, while the output of primary goods also rose at slower pace of 2.9% and intermediate goods at 2.1%. The output of consumer durables rose at lower pace of 2.9%, while that of consumer non-durable durables surged 10.9% in March 2018.

In terms of industries, eleven out of the twenty three industry groups in the manufacturing sector have shown positive growth during the month of March 2018 as compared to the corresponding month of the previous year. The industry group manufacture of furniture has shown the highest positive growth of 41.5%, followed by 20.6% in manufacture of food products and 17.2% in manufacture of motor vehicles, trailers and semi-trailers.

On the other hand, the industry group other manufacturing has shown the highest negative growth of (-) 30.7% followed by (-) 20.6% in manufacture of tobacco products and (-) 18.6% in manufacture of wearing apparel.

Some important item groups showing high positive growth during the current month over the same month in previous year include stainless steel utensils 95.5%, sugar 78.2%, axle 51.8%, rim wheel 45.6%, bars and rods of alloy and stainless steel 44.0%, separators including decanter centrifuge 41.8%, vaccine for veterinary medicine 38.8%, digestive enzymes and antacids incl PPI drugs 32.1%, api & formulations of vitamins 25.9% and commercial vehicles 24.7%.

Some important item groups that have registered high negative growth include hand tools incl interchangeable tools, not mechanised (-) 67.6%, jewellery of gold (studded with stones or not) (-) 66.5%, material handling, lifting and hoisting equipment (-) 56.1%, generators/ alternators (-) 54.7%, printing machinery (-) 47.6%, other tobacco products (-) 40.6%, paper of all kinds excluding newsprint (-) 40.4%, bags/ pouches of hdpe/ ldpe (plastic) (-) 39.3%, plastic components of packing/ closing/ bottling articles & of electrical fittings (-) 32.2%, readymade garments, knitted (-) 30.2% and anti-pyretic, analgesic/anti-inflammatory api & formulations (-) 29.9%.

The cumulative industrial production increased 4.3% in April-March FY2018 compared with 4.6% growth in April-March FY2017. The manufacturing sector growth has improved to 4.6% in April-March FY2018 from 4.2% growth in the corresponding period last year. The electricity generation output rose at moderated pace of 5.3% and mining output growth eased to 2.3% in April-March FY2018.

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