India's industrial production declines 0.7% in August 2016

Only 7 out of 22 industry groups record decline in output in August 2016

India's industrial production declined 0.7% in August 2016 over August 2015, while recording decline for second straight month. The manufacturing sector production fell 0.3%, while the mining output dipped 5.6% contributing to dip in industrial production. However, the electricity output also rose at moderate pace of 0.4% in August 2016. A decline in IIP and manufacturing output was primarily led by sharp 49.4% plunge in the output of small item - cable, rubber insulated, excluding which IIP grew 2.3% in August 2016.

As per the use-based classification, the basic goods output rose 3.2% in August 2016 over a year ago, while the output of intermediate goods moved up 3.6%. The consumer goods output increased 1.1%, but that of capital goods plunged 22.2% in August 2016. Within consumer goods, the production of consumer durables increased 2.3%, while that of consumer non-durables rose 0.2% in August 2016.

The IIP growth in July 2016 has been revised downwards to (-) 2.5% in the first revision compared with (-) 2.4% reported provisionally. Meanwhile, the growth in May 2016 has been revised upwards to 1.3% at the final revision from first revision of 1.1%, while it is also higher compared with 1.2% reported provisionally.

In terms of industries, 7 out of the 22 industry groups in the manufacturing sector have shown negative growth during the month of august 2016 as compared to the corresponding month of the previous year.

The industry group 'electrical machinery & apparatus' has shown the highest negative growth of (-) 49.4% followed by (-) 22.4% in 'furniture; manufacturing' and (-) 6.6% in 'wearing apparel; dressing and dyeing of fur'.

On the other hand, 'radio, TV and communication equipment & apparatus' has shown the highest positive growth of 15.2%, followed by 14.6% in 'other transport equipment' and 12.4% in 'basic metals'.

Some important items showing high negative growth during the current month over the same month in previous year include 'cable, rubber insulated' (-) 86.2%, 'sugar machinery' (-) 65.5%, 'woollen carpets' (-) 35.7%, 'gems & jewellery' (-) 31.0%, 'rice' (-) 25.3% and 'h r sheets' (-) 24.7%.

Some important items that have registered high positive growth include 'fruit pulp' (762.0%). 'air conditioner (room)' (59.1%), 'instant food mixes (ready to eat)' (46.5%), 'ship building and repairs' (41.1%), 'h r coils/ skelp' (39.5%), 'scooter and mopeds' (33.3%), 'stainless/ alloy steel' (31.8%), 'c r sheets' (29.7%), 'purified terephthalic acid' (29.2%) and 'boilers' (22.8%).

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