Photo: Illustration only/Wikimedia Commons

According to CSO data, factory output declined 4.2 per cent and manufacturing a steeper 7.6 per cent during October. However, mining increased 5.2 per cent and electricity 13.3 per cent during the month. In use-based classification, intermediate goods index declined 3.1 per cent, capital goods 2.3 per cent, and consumer non-durables 4.3 per cent consumer durables, somewhat akin to capital goods dropped 35.2 per cent. Basic goods expanded 5.1 per cent.

Taking the cumulative April-October period of 2014-15, factory output fared better even as the feat was relatively subdued; total output index showed 1.9 per cent (0.2 per cent) increase. Mining index increased 2.4 per cent (decline of 2.6 per cent), manufacturing 0.7 per cent (decline of 0.1 per cent) and electricity 10.7 per cent (increase of 5.3 per cent).

In manufacturing, 16 out of 22 major industries (at two-digit NIC levels) declined y-o-y during October, and 10 over April-October. The steepest decline of 70 per cent during the month was recorded in radio, TV and communication equipment; cumulatively the erosion was placed at 53 per cent. Electrical machinery recorded 10 per cent increase during October and 22 per cent over April-October.

In use-based classification, basic goods index increased 7.6 per cent during the first seven months of the ongoing fiscal against 1.1 per cent increase during the corresponding period of 2013-14. Capital goods increased 4.8 per cent (decline of 0.2 per cent); intermediate goods 1.6 per cent (2.7 per cent) and consumer non-durables 1 per cent (6.8 per cent). However, consumer durables went deeper in red with a decline of 16 per cent (11.3 per cent). Consumer durables include passenger cars, two-wheelers, gems and jewellery etc.

We may, however, note in this context that the IIP data for October 2014 could be a statistical blip to some extent as the month had fewer working days due to Diwali; unlike this month in 2013, when the festivities had taken place in November.

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