Industrial growth slips to 3.1% in May from 3.8% in year-ago period

Mining growth was at 3.2% in May as against 5.8% in the corresponding month of the last fiscal

India's industrial output growth slipped to 3.1 per cent in May mainly on account of subdued performance of mining and manufacturing sector, according to government data released Friday.

The Index of Industrial Production (IIP) had expanded by 3.8 per cent in May 2018. The index grew at 4.3 per cent in April and 0.4 per cent in March this year.

The expansion in the mining sector was merely 3.2 per cent in May, as compared to 5.8 per cent in the year-ago month.

Similarly, the growth in the manufacturing sector was also subdued at 2.5 per cent in May, compared to 3.6 per cent in the corresponding month of the last fiscal.

However, the power generation grew at 7.4 per cent in May, against 4.2 per cent in same month last year.

As per Central Statistics Office (CSO) data, the capital goods output, which is a barometer of investment, grew at 0.8 per cent compared to 6.4 per cent in May last year.

As per use-based classification, the growth rates in May 2019 over the same month last year are 2.5 per cent in primary goods, 0.6 per cent in intermediate goods and 5.5 per cent in infrastructure/ construction goods.

The consumer durables and consumer non-durables have recorded growth of (-) 0.1 per cent and 7.7 per cent, respectively.

In terms of industries, 12 out of the 23 industry groups in the manufacturing sector have shown positive growth in May over the same month last year.

The industry group 'Manufacture of wood and products of wood and cork, except furniture; manufacture of articles of straw and plaiting materials' have shown the highest positive growth of 24.8 per cent followed by 15.9 per cent in 'Manufacture of food products' and 9.4 per cent in ‘Manufacture of computer, electronic and optical products'.

On the other hand, the industry group 'Manufacture of paper and paper products' has shown the highest negative growth of (-) 12.2 per cent followed by (-) 9.9 per cent in 'Manufacture of furniture' and (-) 8.7 per cent in 'Manufacture of fabricated metal products, except machinery and equipment'.