Industrial production finally picks up; registers 4.1% growth in April, 2015
By TIOL News Service
NEW DELHI, JUNE 12, 2015: THE Quick Estimates of Index of Industrial Production (IIP) for the month of April 2015 have indicated a growth rate of 4.1%.
The General Index for the month of April 2015 stands at 179.7, which is 4.1% higher as compared to the level in the month of April 2014. The cumulative growth for the period April-March 2014-15 over the corresponding period of the previous year stands at 2.8%.
The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of April 2015 stand at 123.3, 190.6 and 177.2 respectively, with the corresponding growth rates of 0.6%, 5.1% and (-) 0.5% as compared to April 2014 (Statement I). The cumulative growth in the three sectors during April-March 2014-15 over the corresponding period of 2013-14 has been 1.4%, 2.3% and 8.4% respectively.
In terms of industries, sixteen (16) out of the twenty two (22) industry groups (as per 2-digit NIC-2004) in the manufacturing sec tor have shown positive growth during the month of April 2015 as compared to the corresponding month of the previous year (St atement II). The industry group ‘Machinery and equipment n.e.c.’ has shown the highest positive growth of 20.6%, followed by 16.2% in ‘Wood and products of wood & cork except furniture; articles of straw & plating materials’ and 13.4% in ‘Electrical machinery and apparatus n.e.c.’. On the other hand, the industry group ‘Office, accounting & computing machinery’ has shown the highest negative growth of (-) 36.5%, followed by (-) 34.0% in ‘Radio, TV and communication equipment & apparatus’ and (-) 26.7% in ‘Tobacco products’.
As per Use-based classification, the growth rates in April 2015 over April 2014 are 2.8% in Basic goods, 11.1% in Capital goods and 3.3% in Intermediate goods (Statement III). The Consumer durables and Consumer non-durables have recorded growth of 1.3% and 4.4% respectively, with the overall growth in Consumer goods being 3.1%.
Some of the important items showing high positive growth during the current month over the same month in previous year include ‘Plastic machinery including moulding machinery’ (266.4%), ‘H R Sheets’ (157.5%), ‘Paraxylene’ (95.0%), ‘Conductor, Aluminium’ (92.0%), ‘Cashew Karnels’ (52.4%), ‘Vitamins’ (48.3%), ‘Boilers’ (40.3%), ‘Air Conditioner (Room)’ (34.4%), ‘Copper and Copper Products’ (33.4%), ‘Tea’ (33.2%), ‘Carbon Steel’ (32.5%), ‘Block Board’ (26.3%), ‘Three-Wheelers (Including passenger and goods carrier)’ (24.0%) and ‘Sugar’ (22.9%).
Some of the other important items showing high negative growth are: ‘Cigarettes’ [(-) 52.8%], ‘Grinding Wheels’ [(-) 46.5%], ‘Computers’ [(-) 46.4%], ‘Telephone Instruments (incl. Mobile Phones & Accessories)’ [(-) 43.0%], ‘Cement Machinery’ [(-) 38.9%], ‘Tractors (complete)’ [(-) 35.2%], ‘Aviation Turbine Fuel’ [(-) 29.3%] and ‘Aerated Waters and Soft Drinks’ [(-) 23.5%].
However, growth rates in respect of individual items may not reflect their actual contribution in the overall growth rate of IIP. Taking into account the weights of different items, the overall growth rate of IIP can be decomposed into positive and negative contributions of different items. Such contributions of top five items with positive contribution and top five items with negative contribution are given below:
Along with the Quick Estimates of IIP for the month of April 2015, the indices for March 2015 have undergone the first revision and those for January 2015 have undergone the final revision in the light of the updated data received from the source agencies. It may be noted that these revised indices (first revision) in respect of March 2015 shall undergo final (second) revision along with the release of IIP for the month of June 2015.
Statements giving Quick Estimates of the Index of Industrial Production at Sectoral, 2-digit level of National Industrial Classification (NIC-2004) and by Use-based classification for the month of April 2015, along with the growth rates over the corresponding month of previous year, including the cumulative indices and growth rates, are enclosed.
