India’s industrial production recovered to grow only mildly as growth in manufacturing output remained flat with introduction of goods and services tax (GST) which continued to disrupt production networks while retail inflation quickened in August ruling out any rate cut by the central bank in the near future.
Data released by the Central Statistics Office showed Index of Industrial Production (IIP) grew at 1.2% in July from a contraction of 0.2% a month ago. Mining and electricity sectors however grew at robust 4.8% and 6.5% respectively in July. In terms of industries, eight out of the twenty three industry groups (as per 2-digit NIC-2008) in the manufacturing sector have shown positive growth during the month of July 2017..
The Quick Estimates of Index of Industrial Production (IIP) with base 2011-12 for the month of July 2017 have been released by the Central Statistics Office of the Ministry of Statistics and Programme Implementation. IIP is compiled using data received from 14 source agencies viz. (i) Department of Industrial Policy & Promotion (DIPP); (ii) Indian Bureau of Mines; (iii) Central Electricity Authority; (iv) Joint Plant Committee, Ministry of Steel; (v) Ministry of Petroleum & Natural Gas; (vi) Office of Textile Commissioner; (vii) Department of Chemicals & Petrochemicals; (viii) Directorate of Sugar & Vegetable Oils; (ix) Department of Fertilizers; (x) Tea Board; (xi) Office of Jute Commissioner; (xii) Office of Coal Controller; (xiii) Railway Board; and (xiv) Coffee Board.
2. The General Index for the month of July 2017 stands at 118.2, which is 1.2 percent higher as compared to the level in the month of July 2016. The cumulative growth for the period April-July 2017 over the corresponding period of the previous year stands at 1.7 percent.
3. The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of July 2017 stand at 92.6, 119.5 and 151.8 respectively, with the corresponding growth rates of 4.8 percent, 0.1 percent and 6.5 percent as compared to July 2016 (Statement I). The cumulative growth in these three sectors during April-July 2017 over the corresponding period of 2016 has been 2.1 percent, 1.3 percent and 5.6 percent respectively.
4. In terms of industries, eight out of the twenty three industry groups (as per 2-digit NIC-2008) in the manufacturing sector have shown positive growth during the month of July 2017 as compared to the corresponding month of the previous year (Statement II). The industry group ‘Other manufacturing’ has shown the highest positive growth of 20.9 percent followed by 18.9 percent in ‘Manufacture of pharmaceuticals, medicinal chemical and botanical products’ and 10.5 percent in ‘Manufacture of other transport equipment’. On the other hand, the industry group ‘Manufacture of tobacco products’ has shown the highest negative growth of (-) 43.4 percent followed by (-) 11.1 percent in ‘Manufacture of electrical equipment’ and (-) 8.8 percent in ‘Printing and reproduction of recorded media’.
5. As per Use-based classification, the growth rates in July 2017 over July 2016 are 2.3 percent in Primary goods, (-) 1.0 percent in Capital goods, (-) 1.8 percent in Intermediate goods and 3.7 percent in Infrastructure/ Construction Goods (Statement III). The Consumer durables and Consumer non-durables have recorded growth of (-) 1.3 percent and 3.4 percent respectively.
6. Some important items showing high positive growth during the current month over the same month in previous year include ‘Steroids and hormonal preparations (including anti-fungal preparations)’ (89.4%), ‘Digestive enzymes and antacids (incl. PPI drugs)’ (54.5%), ‘API & formulations of hypo-lipidemic agents incl. anti-hyper-triglyceridemics (e.g. simvastatin, atorvastatin, etc); anti-hypertensive’ (43.1%), ‘Vaccine for veterinary medicine’ (42.5%), ‘Printed Circuit Boards (whether or not mounted with IC chips /components)’ (37.7%), ‘HR plates of mild steel’ (31.3%), ‘Axle’ (30.3%), ‘Jewellery of gold (studded with stones or not)’ (27.8%), ‘HR coils and sheets of mild steel’ (23.2%), and ‘Full-cream/ Toned/ Skimmed milk, whether or not chilled’ (20.5%).
7. Some important items that have registered high negative growth include ‘Other tobacco products’ [(-) 69.9%], ‘Shelled cashew kernel, whether or not processed/ roasted/ salted’ [(-) 61.5%], ‘Kerosene’ [(-) 51.5%], ‘Plastic jars, bottles and containers’ [(-) 50.5%], ‘Printing machinery’ [(-) 48.9%], ‘Ayurvedic and Homeopathic medicaments’ [(-) 35.7%], ‘Tooth Paste’ [(-) 32.0%], ‘Electrical apparatus for switching or protecting electrical circuits (e.g switchgear, circuit breakers/switches, control/ meter panel)’ [(-) 30.5%], ‘Antibiotics, API & formulations’ [(-) 27.6%], ‘Palm Oil refined (including Palmolein)’ [(-) 26.5%] and ‘API & formulations of vitamins’ [(-) 22.1%].