India's industrial production growth slows to 2.2% in October 2017

Industrial production growth moderates to 2.5% in April-October 2017

India's industrial production (base year 2011-12=100) rose at moderated pace of 2.2% in October 2017 over October 2016, while showing a deceleration in growth from 4.1% increase in September 2017. The manufacturing sectors production rose at decelerated pace of 2.5% in October 2017, while mining output growth slumped to mere 0.2% in October 2017. Further, the electricity generation growth also moderated to 3.2% in October 2017, contributing to the moderation in overall industrial production growth in October 2017. The growth for September 2017 has been revised upwards to 4.1% from 3.8% reported earlier.

The cumulative industrial production growth has eased to 2.5% in April-October 2017 compared with 5.6% growth in April-October 2016. The manufacturing sector growth has moderated sharply to 2.1% in April-October 2017 from 5.9% growth in the corresponding period last year. The electricity generation output also rose at moderated pace of 5.3%, while mining output improved at accelerated pace of 3.4% in April-October 2017.

 

As per the use-based classification, primary goods output improved at slower pace of 2.5% in October 2017 over a year ago, while the output of capital goods moderated pace of 6.8% in October 2017. The output of intermediate goods rose mere 0.2%. The output of Infrastructure/ construction goods surged 5.2%, while that of consumer non-durable durables improved 7.7%. However, the output consumer durable goods dipped 6.9% in October 2017 over October 2016.

In terms of industries, 10 out of the twenty three industry groups in the manufacturing sector have shown positive growth during the month of October 2017 as compared to the corresponding month of the previous year.

The industry group manufacture of pharmaceuticals, medicinal chemical and botanical products has shown the highest positive growth of 23.0% followed by 12.8% in manufacture of motor vehicles, trailers and semi-trailers and 9.7% in manufacture of computer, electronic and optical products.

On the other hand, the industry group other manufacturing has shown the highest negative growth of (-) 36.4% followed by (-) 20.9% in manufacture of tobacco products and (-) 16.1% in manufacture of rubber and plastic products.

Some important item groups showing high positive growth during the current month over the same month in previous year include bodies of trucks, lorries and trailers (199.0%), meters (electric and non-electric) (64.2%), separators including decanter centrifuge (60.6%), digestive enzymes and antacids (incl PPI drugs) (53.9%), bars and rods of alloy and stainless steel (52.0%), flat products of stainless steel (50.9%), axle (50.3%), full-cream/ toned/ skimmed milk, whether or not chilled (21.5%) and tea (20.1%).

Some important item groups that have registered high negative growth include jewellery of gold (studded with stones or not) 76.9%, plastic jars, bottles and containers 52.1%, electric heaters 39.9%, bags/ pouches of hdpe/ ldpe (plastic) 38.2%, other tobacco products 38.1%, printing machinery 37.5%, tooth paste 32.4%, electrical apparatus for switching or protecting electrical circuits (e.g switchgear, circuit breakers/switches, control/ meter panel) 31.6%, plastic components of packing/ closing/ bottling articles & of electrical fittings 30.9%, palm oil refined (including palmolein) 28.6%, t v set 25.5% and copper bars, rods & wire rods 23.4%.

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