Industrial production expands 2.7% in January 2017

Industrial production up 0.6% in April-January FY2017

India's industrial production improved 2.7% in January 2017 over January 2016, snapping 0.1% decline recorded in December 2016. The manufacturing sector's production increased 2.3% in January 2017, mainly contributing to the increase in industrial production. Further, the mining output increased 5.3%, while the electricity generation also moved up 3.9% in January 2017.

In terms of industries, 09 out of the 22 industry groups in the manufacturing sector have shown positive growth during the month of January 2017 as compared to the corresponding month of the previous year.

The industrial production rose 0.6% in April-January FY2017, compared with 2.7% growth in the corresponding period last year. The manufactured product sector output declined 0.2%, while the mining and electricity generation improved 1.4% and 5% in April-January 2017.

As per the use-based classification, the basic goods output improved 5.3% in January 2017 over a year ago, while the output of capital goods surged 10.7%. However, the consumer goods output declined 1%, while the output of intermediate goods also fell 2.3% in January 2017. Within consumer goods, the production of consumer durables increased 2.9%, but that of consumer non-durables declined 3.2% in January 2017 over January 2016.

The IIP growth in December 2016 has been revised marginally upwards to (-) 0.1% in the first revision compared with (-) 0.4% reported provisionally. Meanwhile, the growth in September 2016 has been also maintained unchanged at (-) 1.9%.

The industry group 'Electrical machinery & apparatus' has shown the highest positive growth of 42.4% followed by 21.8% in 'Radio, TV and communication equipment & apparatus' and 12.4% in 'Basic metals'.

On the other hand, the industry group 'Office, accounting and computing machinery' has shown the highest negative growth of (-) 16.0% followed by (-) 14.8% in 'Food products and beverages' and (-) 13.4% in 'Other transport equipment'.

Some important items showing high positive growth during the current month over the same month in previous year include 'Cable, Rubber Insulated' 282.8%, 'Fruit Pulp' 121.5%, 'Vitamins' 46.9%, 'HR Coils/ Skelp'40.0%, 'Telephone Instruments including Mobile Phones and accessories' 31.7%, 'Plates' 27.2% and 'Antibiotics and it's preparations' 25.9%.

Some important items that have registered high negative growth include 'HR Sheets' (-) 39.6%, 'Ship Building and Repairs' (-) 31.9%, 'Sugar' (-) 28.2%, 'PVC Pipes and Tubes' (-) 27.0%, 'Molasses' (-) 26.0%, 'Leather Garments' (-) 24.3% and 'Three-Wheelers (including passenger and goods carrier)' (-) 24.3%.

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