Industrial production growth slows to 2.7% in May 2015

Growth revised down to 3.4% for April 2015 from 4.1% reported provisionally

India's Index of industrial production (IIP) rose at a decelerated pace of 2.7% in May 2015 over a year ago compared with the revised growth of 3.4% in April 2015. The IIP growth for April 2015 has been scaled down to 3.4% in the first revision compared with 4.1% reported provisionally. Meanwhile, the growth in February 2015 has also been revised slightly downwards to 4.8% in the second and final revision compared with 4.9% in the first revision and 5% released provisionally.

Moderation in the pace of growth of industrial production was driven entirely by the near halving of growth in the output of manufacturing sector to 2.2% in May 2015 from 4.2% in April 2015. On the other hand, the mining sector output growth improved to 2.8%, while electricity generation also increased at an accelerated pace of 6% in May 2015.

As per the use-based classification, the basic goods output increased at higher pace of 6.4% in May 2015 over a year ago. However, the output of intermediate goods rose at decelerated pace of 1.2%, while the capital goods output growth also slowed down to 1.8% contributing to the moderation in the IIP growth. Further, the output of consumer goods continued to exhibit seesaw growth and declined 1.6%. Within consumer goods, the production of consumer durables fell 3.9%, while that of consumer non-durables also declined 0.1% in May 2015.

In terms of industries, twelve (12) out of the twenty two (22) industry groups in the manufacturing sector showed positive growth in May 2015 as compared with the corresponding month of the previous year.

The industry group 'Wearing apparel; dressing and dyeing of fur' has shown the highest positive growth of 15.8%, followed by 11.2% in 'Furniture; manufacturing' and 11.1% in 'Coke, refined petroleum products & nuclear fuel'.

On the other hand, the industry group 'Radio, TV and communication equipment & apparatus' has shown the highest negative growth of (-) 24.3%, followed by (-) 18.9% in 'Office, accounting & computing machinery' and (-) 9.2% in 'Publishing, printing & reproduction of recorded media'.

Some of the important items showing high positive growth during the current month over the same month in previous year include 'H R Sheets' 242.9%, 'Conductor, Aluminium' 156.9%, 'Lubricating oil' 123.7%, 'Copper and Copper Products' 86.8%, 'Wood furniture' 64.1%, 'Vitamins' 34.5%, 'Tea' 29.2% and 'Carbon Steel' 22.0%.

Some of the other important items showing high negative growth are: 'Woollen Carpets' (-) 43.7%, 'Grinding Wheels' (-) 42.9%, 'Viscose staple fibre raw' (-) 41.2%, 'Ayurvedic Medicaments' (-) 34.5%, 'Aerated Waters and Soft Drinks' (-) 31.6%, 'Fruit Pulp' (-) 29.9%, 'Telephone Instruments (incl. Mobile Phones & Accessories)' (-) 29.4% and 'Tractors (complete)' (-) 27.2%.

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