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IIP growth for December slows down to 1.7%

13 Feb 2015 Evaluate

Industrial output growth much in contrast to the new GDP data remained sluggish in December, rising at an annual rate of 1.7 percent compared to the previous month’s 3.8% expansion and 0.1 percent growth in the year-ago period. Along with the quick estimates of IIP for the month of December 2014, the index for November 2014 has undergone the first revision and was revised upwards to 3.9 percent from 3.8 percent previously.

Index of Industrial Production (IIP) with base 2004-05 for the month of December 2014 stood at 182.6. The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of December 2014 were at 131.6, 192.9 and 177.6 respectively, with the corresponding growth rates of (-) 3.2%, 2.1% and 4.8% as compared to December 2013. The cumulative growth in the three sectors during April-December 2014-15 over the corresponding period of 2013-14 has been 1.7%, 1.2% and 10.0% respectively. 13 out of the 22 industry groups in the manufacturing sector have shown positive growth during the month of December 2014 year-on-year, with capital goods output growing by 4.8 per cent as against a dip of 0.4 per cent.

As per Use-based classification, the growth rates in December 2014 over December 2013 were 2.4% in Basic goods, 4.1 percent in Capital goods and 0.1 percent in Intermediate goods.  The Consumer durables and Consumer non-durables have recorded growth of (-) 9.0% and 5.7% respectively, with the overall growth in Consumer goods being 0.7%.

Segment-wise, high growth was witnessed in conductor, aluminium (132.9 percent), gems and jewellery (81.8 percent), pens (47.7 percent), leather garments (38.9 percent), air conditioners (20.5 percent), scooters and mopeds (27.9 percent) and plastic machinery including moulding machinery (24.7 percent).

Segment-wise, high negative growth was reported in ship building and repairs (-52.3 percent), wood furniture (-26.5 percent), sugar machinery (-48.6 percent), tractors (- 42.6 percent), computers (- 36 percent), glass sheet (- 31.6 percent), colour TV sets (- 26.6 percent), steel structures (- 24.3 percent) and telephone instruments including mobile phones and accessories(-80.1 percent).

Industrial growth after hitting a five months high in last month once again showed a sluggish trend, though generally the month of December remains slow but lower exports along with a contraction in the mining and quarrying sector mainly impacted the expansion. The growth in consumer durables segment too fell 9%, indicating a slowdown in demand, while consumer non-durables growth remained flat.

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