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India's industrial production growth rebounds to 4.3% in July 2019

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Capital Market
Last Updated : Sep 12 2019 | 6:31 PM IST

13 out of 23 industry groups in the manufacturing sector shows positive growth

India's industrial production (base year 2011-12=100) improved 4.3% in July 2019, while showing acceleration in growth from four-month low of 1.2% in June 2019. However, the industrial production growth for June 2019 has been revised downwards to 1.2% from 2.0% as reported provisionally.

The manufacturing sector output rose 4.2%, while showing improvement in growth from 0.2% increase in June 2019. The mining sector production growth also improved to 4.9% in July 2019. On the other hand, the electricity generation growth has moderated to four-month low of 4.8% in July 2019.

As per the use-based classification, the output of capital goods continued to decline for seventh straight month at 7.1% in July 2019, while the output of intermediate goods improved at record high pace of 13.9% for current base year data in July 2019 driving overall industrial production growth. The infrastructure/ construction goods growth rebounded 2.1%, while the output of primary goods also rose at improved pace of 3.5%. Within the consumer durables, the output of consumer non-durables increased 8.3%, but that of consumer durables dipped 2.7% in July 2019.

In terms of industries, 13 out of 23 industry groups in the manufacturing sector have shown positive growth during the month of July 2019 as compared to the corresponding month of the previous year.

The industry group food products has shown the highest positive growth of 23.4% followed by 17.3% in basic metals and 15.0% in wearing apparel. On the other hand, the industry group paper and paper products has shown the highest negative growth of (-) 15.4% followed by (-) 13.3% in motor vehicles, trailers and semi-trailers and (-) 10.9% in Printing and reproduction of recorded media.

The cumulative industrial production increased 3.3% in April-July FY2020 compared with 5.5% growth in April-July FY2019. The manufacturing sector growth eased to 2.8% in April-July FY2020 from 5.6% growth in the corresponding period last year. The mining output growth moderated to 3.4%, while electricity generation output growth improved to 6.6% in April-July FY2020.P>

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First Published: Sep 12 2019 | 6:23 PM IST

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