Industrial production growth slows to 3.8% in September 2017

Industrial production rises 2.5% in April-September 2017

India's industrial production (base year 2011-12=100) rose at moderated pace of 3.8% in September 2017 over September 2016, while showing deceleration in growth from 4.5% increase in August 2017. The manufacturing sectors production improved at steady pace of 3.4% in September 2017, while mining output also increased at steady pace of 7.9% in September 2017. However, the electricity generation growth moderated sharply to 3.4% in September 2017 from 8.3% in August 2017, mainly contributing to the moderation in overall industrial production growth in September 2017. The growth for August 2017 has been revised upwards to 4.5% from 4.3% reported earlier.

As per the use-based classification, primary goods output improved 6.6% in September 2017 over a year ago, while the output of capital goods increased 7.4% in September 2017. The output of intermediate goods gained 1.9%, while snapping decline consistent decline for previous three straight months. The output of Infrastructure/ construction goods rose 0.5%, while that of consumer non-durable durables improved 10%. However, the output consumer durable goods dipped 4.8% in September 2017 over September 2016.

In terms of industries, 11 out of the twenty three industry groups in the manufacturing sector have shown positive growth during the month of September 2017 as compared to the corresponding month of the previous year.

The industry group pharmaceuticals, medicinal chemical and botanical products has shown the highest positive growth of 26.4% followed by 13.2% in computer, electronic and optical products and 13.1% in motor vehicles, trailers and semi-trailers. On the other hand, the industry group other manufacturing has shown the highest negative growth of (-) 27.1% followed by (-) 23.1% in tobacco products and (-) 19.2% in electrical equipment.

Some important items showing high positive growth during the current month over the same month in previous year include separators including decanter centrifuge (117.4%), bodies of trucks, lorries and trailers (94.5%), steroids and hormonal preparations (including anti-fungal preparations) (66.7%), meters (electric and non-electric) (58.5%), digestive enzymes and antacids (including PPI drugs) (51.2%), axle (50.6%), fragrances & oil essentials (46.0%), anti-pyretic, analgesic/anti-inflammatory API & formulations (41.2%), vaccine for veterinary medicine (34.3%), telephones and mobile instruments (28.8%) and films of polythene, polyester, PVC & other forms of plastic (25.3%).

Some important items that have registered high negative growth include electric heaters (-) 95.2%, anti-malarial drug (-) 76.9%, jewellery of gold (studded with stones or not) (-) 67.7%, plastic jars, bottles and containers (-) 61.9%, API & formulations of hypo-lipidemic agents including anti-hyper-triglyceridemics (e.g. simvastatin, atorvastatin, etc), anti-hypertensive (-) 44.6%, other tobacco products (-) 36.1%, electrical apparatus for switching or protecting electrical circuits (e.g switchgear, circuit breakers/switches, control/ meter panel) (-) 31.5%, cement clinkers (-) 30.7%, printing machinery (-) 30.2%, tooth paste (-) 26.9%, palm oil refined (including palmolein) (-) 21.9%, tea (-) 21.0% and plastic components of packing/ closing/ bottling articles & of electrical fittings (-) 20.7%.

Industrial production rose 2.5% in April-September FY2018, compared with 5.8% growth in the corresponding period last year. The manufactured product sector output improved 1.9%, while the mining and electricity generation moved up 4% and 5.7% in April-September FY2018.

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