Industrial production rises 0.1% in January 2014, snapping decline for last three months

IIP growth for December 2013 and October 2013 revised upwards

India's Index of industrial production (IIP) rose 0.1% in January 2014, snapping decline for last three sequential months. The moderation in pace of decline in the output of manufacturing sector to 0.7% in January 2014 from 1.2% in December 2013, mainly led to marginal improvement in IIP during January 2014. Meanwhile, the output of mining sector rose at steady pace of 0.7%, while the electricity generation growth eased to 6.5% in February 2014.

As per the used based classification, the output of basic goods rose 0.9% in January 2014, with the increase in mining output and healthy growth in electricity generation. The output of intermediate goods rose 3.4%, but that of capital goods and consumer goods declined 4.2% and 0.6%, respectively in January 2014. The decline in the output of consumer goods was driven by 8.3% plunge in consumer durable goods production recording fall for fourteenth straight month. The output of consumer non-durable goods moved up 4.4% in January 2014.

The IIP growth for the month of December 2013 has been revised upwards to (-) 0.2% from (-) 0.6% reported earlier, while the growth for the month of October 2013 has also been revised upwards to (-) 1.2% from 1.6% reported at first revision and (-) 1.8% at the provisional level.

In terms of industries, eleven (11) out of the twenty-two (22) industry groups in the manufacturing sector have shown positive growth during the month of January 2014, as compared to the corresponding month of the previous year.

The industry group 'Radio, TV and communication equipment & apparatus' has shown the highest negative growth of (-) 28.2%, followed by (-) 14% in 'Motor vehicles, trailers & semi-trailers' and (-) 9.5% in 'Fabricated metal products, except machinery & equipment'.

On the other hand, the industry group 'Medical, precision & optical instruments, watches and clocks' has shown a positive growth of 17.6% followed by 15.2% in 'Electrical machinery & apparatus', 14.4% in 'Wearing apparel; dressing and dyeing of fur' and 8.9% in 'Chemicals and chemical products'.

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