Industrial production improves to 5% in February 2015

IIP growth for January 2015 revised up to 2.8% and for November 2014 to 5.2%

India's Index of industrial production (IIP) increased 5% in February 2015 compared with the revised growth of 2.8% in January 2015. The IIP growth for January 2015 has been scaled up to 2.8% at the first revision compared with 2.6% reported provisionally. Meanwhile, the growth in November 2014 has also been revised sharply upwards to 5.2% at its second and final revision compared with 3.9% at the first revision and 3.8% released provisionally.

The mining sector output rebounded 2.5% in February 2015, snapping decline for last two months. Electricity generation also rose at improved pace of 5.9% in February 2015. Meanwhile, the manufacturing sector's output jumped at nine months high pace of 5.2% in February 2015 contributing to the overall growth in the industrial production.

As per use-based classification, the basic goods output increased 5% in February 2015 over a year ago. The output of intermediate goods increased 1.1%, while the capital goods output surged 8.8%. However, the output of consumer goods increased at 28-month high pace of 5.2% in February 2015 snapping a 1.8% fall in January 2015. Within consumer goods, the production of consumer durables declined 3.4%, while that of consumer non-durables surged 10.7%.

In terms of industries, fifteen (15) out of the twenty-two (22) industry groups in the manufacturing sector showed a positive growth in February 2015 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 62.0%, followed by 35.8% in Electrical machinery and apparatus and 19.6% in Wood and products of wood & cork except furniture; articles of straw & plating materials.

On the other hand, the industry group Office, accounting & computing machinery has shown the highest negative growth of (-) 44.6%, followed by (-) 43.4% in Radio, TV and communication equipment & apparatus and (-) 8.2% in Other transport equipment.

Some of the important items showing high positive growth during the current month over the same month in previous year include H R Sheets (216.3%), Leather Garments (151.8%), Polythene bags including HDPE & LDPE bags (131.6%), Cable, Rubber Insulated (63.5%), Vitamins (60.5%), Stainless/ alloy steel (57.0%), Apparels (52.5%), Conductor, Aluminium (48.5%), PVC Pipes and Tubes (44.9%), Block Board (34.2%), Carbon Steel (27.4%) and Air Conditioner (Room) (27.4%).

Some of the other important items showing high negative growth are: Heat Exchangers (-) 54.7%, Electric Sheets (-) 53.9%, Telephone Instruments (incl. Mobile Phones & Accessories) (-) 51.7%, Computers (-) 51.5%, Furnace Oil (-) 37.5%, Ship Building & Repairs (-) 34.8%, Tractors (complete) (-) 29.8%, Boilers (-) 28.8%, Generator/ Alternator (-) 28.7% and CR Sheets (-) 21.7%.

IIP increased 2.8% in April-February FY2015 compared with the (-) 0.1% fall in the corresponding period of the previous year. The strong growth in the basic goods output, at 7.4%, mainly supported the overall growth in the IIP for April-February 2015. The capital goods output increased 6%, while intermediate goods posted a 1.6% rise in production. However, the output of consumer goods dipped 3.7% in April-February 2015 in addition to a 2.9% fall recorded in April-February FY2014. Within the consumer goods, the output of consumer non-durables rose 2.8%, but that of consumer durables dipped 13.3%.

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