Industrial production improves 1.2% in July 2017

Cumulative industrial production rises 1.7% in April-July 2017

India's industrial production (base year 2011-12=100) rose 1.2% in July 2017 over July 2016, while snapping 0.2% decline for June 2017. The manufacturing sector's production rose 0.1% in July 2017, while the electricity generation increased 6.5% and mining output also moved up 1.2% in July 2017. The growth for June 2017 has been revised downwards to (-) 0.2% from (-) 0.1% reported earlier.

As per the use-based classification, primary goods output improved 2.3% in July 2017 over a year ago, but the output of capital goods continued to decline for fourth straight month at 1%. Intermediate goods output also fell 1.8%, while the output of consumer durable goods fell 1.3%. The output of consumer non-durable durables improved 3.4%, while that of Infrastructure/ construction goods moved up 3.7% in July 2017 over July 2016.

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

The industry group 'Other manufacturing' has shown the highest positive growth of 20.9% followed by 18.9% in 'Manufacture of pharmaceuticals, medicinal chemical and botanical products' and 10.5% in 'Manufacture of other transport equipment'. On the other hand, the industry group 'Manufacture of tobacco products' has shown the highest negative growth of (-) 43.4% followed by (-) 11.1% in 'Manufacture of electrical equipment' and (-) 8.8% 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 'Steroids and hormonal preparations (including anti-fungal preparations)' (89.4%), 'Digestive enzymes and antacids (incl. PPI drugs)' (54.5%), 'API & formulations of hypo-lipidemic agents incl. anti-hyper-triglyceridemics (e.g. simvastatin, atorvastatin, etc); anti-hypertensive' (43.1%), 'Vaccine for veterinary medicine' (42.5%), 'Printed Circuit Boards (whether or not mounted with IC chips /components)' (37.7%), 'HR plates of mild steel' (31.3%), 'Axle' (30.3%), 'Jewellery of gold (studded with stones or not)' (27.8%), 'HR coils and sheets of mild steel' (23.2%), and 'Full-cream/ Toned/ Skimmed milk, whether or not chilled' (20.5%).

Some important items that have registered high negative growth include 'Other tobacco products' (-) 69.9%, 'Shelled cashew kernel, whether or not processed/ roasted/ salted' (-) 61.5%, 'Kerosene' (-) 51.5%, 'Plastic jars, bottles and containers' (-) 50.5%, 'Printing machinery' (-) 48.9%, 'Ayurvedic and Homeopathic medicaments' (-) 35.7%, 'Tooth Paste' (-) 32.0%, 'Electrical apparatus for switching or protecting electrical circuits (e.g. switchgear, circuit breakers/switches, control/ meter panel)' (-) 30.5%, 'Antibiotics, API & formulations' (-) 27.6%, 'Palm Oil refined (including Palmolein)' (-) 26.5% and 'API & formulations of vitamins' (-) 22.1%.

Industrial production rose 1.7% in April-July FY2018, compared with 6.5% growth in the corresponding period last year. The manufactured product sector output improved 1.3%, while the mining and electricity generation moved up 2% and 5.6% in April-July FY2018.

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