Industrial production rises 4.2% in July 2015

Growth revised up to 4.4% for June 2015 from 3.8% reported provisionally

India's Index of industrial production (IIP) increased 4.2% in July 2015 over a year ago compared with the revised growth of 4.4% in June 2015. The IIP growth for June 2015 has been scaled up 4.4% in the first revision compared with 3.8% reported provisionally. Meanwhile, the growth in April 2015 is trimmed further down to 3% at final revision from 3.4% at first revision and from 4.1% reported provisionally.

The output of manufacturing sector improved 4.7% in July 2015, compared with 5.4% growth in June 2015. Meanwhile, the mining sector output improved 1.3% in July 2015, snapping (-) 0.5% decline in June 2015. The electricity generation growth also increased at higher pace of 3.5% in July 2015 against 1.3% rise in June 2015.

As per the use-based classification, the basic goods output increased 5.2% in July 2015 over a year ago. Meanwhile, the output of capital goods rebounded 10.6% against (-) 2.1 dip in the previous month. The intermediate goods output rose 1.5%, but the growth of consumer goods output eased to 1.3% in July 2015. Within consumer goods, the production of consumer durables surged 11.4%, but that of consumer non-durables declined 4.6% in July 2015.

Industrial production growth has remained nearly flat at 3.5% in April-July 2015 compared with 3.6% in the corresponding period last year.

In terms of industries, twelve (12) out of the twenty two (22) industry groups in the manufacturing sector have shown positive growth during the month of July 2015 as compared to the corresponding month of the previous year.

The industry group 'Furniture; manufacturing' has shown the highest positive growth of 69.3%, followed by 21.7% in 'Wearing apparel; dressing and dyeing of fur' and 20.9% in 'Electrical machinery & apparatus n.e.c.'.

On the other hand, the industry group 'Office, accounting & computing machinery' has shown the highest negative growth of (-) 14.8%, followed by (-) 12.1% in 'Food products and beverages' and (-) 9.5% 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 'Molasses' 280.5%, 'Gems and Jewellery' 156.1%, 'H R Sheets' 150.9%, 'Conductor, Aluminium' 52.8%, 'Rice' 37.9%, 'Cigarettes' 37.8%, 'Polypropylene including co-polymer' 36.7%, 'Propylene' 30.9%, 'Carbon Steel' 25.5%, 'Leather Garments' 21.8%, 'Apparels' 21.7% and 'Cable, Rubber Insulated' 20.9%.

Some of the other important items showing high negative growth are: 'Instant Food Mixes (Ready to eat)' (-) 49.0%, 'Air Conditioner (Room)' (-) 44.7%, 'Grinding Wheel' (-) 40.3%, 'Colour TV sets' (-) 35.4%, 'Antibiotics & It's Preparations' (-) 26.8%, 'Furnace Oil' (-) 25.8%, 'Boilers' (-) 24.7%, 'Synthetic Yarn' (-) 22.9% and 'Aerated Waters and Soft Drinks' (-) 21.2%.

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