Industrial production growth slows to 3.1% in April

Industrial production growth slipped to 3.1% in April due to poor show by manufacturing, mining and power sectors coupled with lower offtake of capital goods and consumer durables. The slip is significant compared to the same period last year, when industrial production grew by 6.5%.

The factory output measured in terms of the index of industrial production (IIP) had grown by 2.7% in March but has been revised upwards to 3.75%, the data released by the Central Statistics Office (CSO) today showed.

According to the CSO data, manufacturing sector, which constitutes 77.63% of the index, grew at 2.6% in April compared to 5.5% in same month last year.

Similarly, mining sector output grew at 4.2% in the month under review compared to 6.7% year ago. Power generation rose by 5.4% in April, down from 14.4% expansion in April last year.

The output of capital goods, which are the barometer of investment in the country, contracted by 1.3% in April compared to growth of 8.1% a year ago.

Similarly, consumer durables or white goods production declined by 6% in April against 13.8% growth a year ago.

As per use-based classification, the growth rates in April 2017 over April 2016 are 3.4% in primary goods, 4.6% in intermediate goods and 5.8% in infrastructure/ construction goods.

The consumer non-durables have recorded a growth rate of 8.3%. Consumer goods overall grew at 5.8%.

In terms of industries, 14 out of 23 industry groups in the manufacturing sector have shown positive growth in April 2017 compared to the corresponding month of the previous year.

The industry group “manufacture of pharmaceuticals, medicinal chemical and botanical products” has shown the highest growth of 29.1% followed by 17.9% in “manufacture of tobacco products” and 9.5% in “manufacture of machinery and equipment”.

On the other hand, the industry group “manufacture of beverages” has shown the highest negative growth of (-) 19.2% followed by (-) 15.6% in “manufacture of motor vehicles, trailers and semi-trailers” and (-) 14.4% in “manufacture of electrical equipment”.

[“source-hindustantimes”]