The aggregate factory output index (IIP) crawled to 0.6 per cent in August, much to the discomfort of the government which had banked on some consolidation from the 2.6 per cent rise in July. The industry feat looks discouraging also when juxtaposed with a robust growth of 7.2 per cent in power generation during the month. Manufacturing slipped back into a decline, though nominally, from 3.2 per cent growth in July. Similarly, capital goods production, a part of manufacturing sector, too, followed suit, against a 15.8 per cent spurt in July. Mining, contributing fuel for power generation and several minerals for industrial production, remained in the negative zone, even as the rot was only nominal. Coal production consolidated with a 5.5 per cent increase, from 1.2 per cent in July and decline in the first six months of calendar year 2013, even as crude oil and natural gas remained negative.

As many as 13 out of 22 industries at two-digit NIC levels showed decline in production during April-August. Electrical machinery and apparatus n.e.c. posted a 26 per cent increase during August and 29 per cent during the first five months of the ongoing fiscal. Wearing apparel and dressing material also posted a robust 41 per cent cumulative growth.

Index of Industrial Production (Y-o-Y % Increase)
 
August
April-August
 
2012
2013
2012-13
2013-14
Mining
-0.2
-0.3
-1.8
-3.4
Manufacturing
2.4
-0.1
0
-0.1
Electricity
1.9
7.2
4.8
4.5
Overall IIP
2
0.6
0.2
0.1
Use-based classification
Basic goods
3
1.5
2.7
0.5
Capital goods
-4.4
-2
-14.4
0.8
Intermediate goods
2.7
3.6
1
2.3
Consumer goods
3.6
-0.8
3.2
-1.6
Consumer durables
1
-7.6
5.1
-11
Consumer non-durables
6
5
1.6
6.6

Some of the important items showing high growth during the month included woolen carpets (67.7 per cent), leather garments (26.6 per cent), aviation turbine fuel (46.2 per cent), vitamins (75 per cent), ayurvedic medicaments (80.6 per cent), steel structures (25.4 per cent), tractors (32.2 per cent), rubber insulated cables (284.5 per cent), and passenger cars (31.5 per cent). Rubber insulated cable had recorded high growth rates consistently in earlier four months.

Some of the important items showing steep decline during the month included stainless and alloy steel [(-) 25.8 per cent], boilers [(-) 35.7 per cent], sealed compressors [(-) 50.4 per cent], air conditioner (room) [(-) 52.3 per cent], heat exchangers [(-) 51.7 per cent], earthmoving machinery [(-) 45.8 per cent], sugar machinery [(-) 36.7 per cent], plastic machinery including moulding machinery [(-) 33.7 per cent], cement machinery [(-) 48.0 per cent], aluminium conductor [(-) 31.7 per cent], generator and alternator [(-) 72.7 per cent], telephone instruments (including mobile phones and accessories) [(-) 23.9 per cent], and gems and jewellery [(-) 36.1 per cent].

Going by use-based classification, capital goods index declined in four out of five months in the current fiscal, though helped by 15.6 per cent increase in July; the cumulative index is in positive growth zone. Consumer durables, somewhat akin to capital goods, declined for the eighth consecutive month with the cumulative decline over April-August placed at 11 per cent. Basic goods IIP stagnated at year-ago level, intermediate goods rose 2.3 per cent, and consumer non-durable was up 6.6 per cent during April-August.


Print pagePDF pageEmail page

LEAVE A REPLY

Please enter your comment!
Please enter your name here

*