Mining sector continues to drag IIP growth
Index of industrial production (IIP) rebounded 2.6% in July 2013, snapping decline for last two months. The rebound in the pace of IIP growth was led by bounce in the manufacturing index growth at 3.0% after two months of sharp fall. The electricity generation also increased at higher pace of 5.2% in July 2013. However, the mining index continued to witness negative growth weighing on the growth of IIP.The industrial production growth for the month of June 2013 has been revised upwards to (-) 1.8% from (-) 2.2% reported earlier, while the growth for the month of April 2013 has been scaled down to 1.5% from 1.8% reported at first revision and provisional level of 2.3%.
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 July 2013, as compared to the corresponding month of the previous year. The industry group 'Electrical machinery & apparatus n.e.c.' has shown the highest positive growth of 83.6%, followed by 44.0% in 'Wearing apparel; dressing and dyeing of fur' and 16.5% in 'Luggage, handbags, saddlery, harness & footwear; tanning and dressing of leather products'. On the other hand, the industry group 'Radio, TV and communication equipment & apparatus' has shown a negative growth of 20.8% followed by 11.3% in 'Furniture; manufacturing n.e.c.' and 10.6% in 'Machinery and equipment n.e.c.'.
As per the used based classification, the output of capital goods jumped 15.6%, while the output of basic goods also rose 1.7% in July 2013. The output of intermediate goods moved up 2.4%, but the output of consumer goods plunged 0.9% in July 2013. The decline in the output of consumer goods was driven by 9.3% dip in the production of consumer durables, while the output of consumer non-durables rose 6.8% in July 2013.
Some of the important items showing high positive growth during the current month over the same month in previous year include 'Fruit Pulp' (50.5%), 'Cashew Kernels' (23.2%), 'Apparels' (39.8%), 'Leather Garments' (62.6%), 'Purified Terephthalic Acid' (29.6%), 'Vitamins' (61.8%), 'Ayurvedic Medicaments' (44.6%), 'Cable, Rubber Insulated' (336.0%) and 'Ship Building & Repairs' (58.7%).
Some of the other important items showing high negative growth are: 'Grinding Wheels' [(-) 29.4%], 'Boilers' [(-) 36.6%], 'Air Conditioner (Room)' [(-) 30.8%], 'Earth Moving Machinery' [(-) 42.6%], 'Sugar Machinery' [(-) 27.9%], 'Plastic Machinery Incl. Moulding Machinery' [(-) 40.7%], 'Transformers (Small)' [(-) 22.7%], 'Generator/ Alternator' [(-) 42.0%], 'Telephone Instruments (incl. Mobile Phones & Accessories)' [(-) 21.5%] and 'Gems and Jewellery' [(-) 20.5%].
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