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IIP gives a positive surprise coming at 4.1% in April

15 Jun 2015 Evaluate

In a positive surprise the industrial production growth accelerated to a two-month high of 4.1 percent in April 2015 against 2.1 percent in the month before, affirming that broad economic activity was on the mend. The major boost to the numbers came from capital goods sector whose growth surged to 11.1 percent in April and a 3.1 percent expansion for consumer durables, indicating pick-up with the broad investment cycle.

The quick estimates of Index of Industrial Production (IIP) with base 2004-05 for the month of April 2015, released by the Central Statistics Office (CSO) of the Ministry of Statistics and Programme Implementation, for the month of April 2015 stands at 179.7, 4.1% higher as compared to the level in the month of April 2014, The factory output, measured by the Index of Industrial Production (IIP), was 3.7 per cent in April 2014. However 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. The cumulative growth in the three sectors during April-March 2014-15 over the corresponding period of 2013-14 were 1.4%, 2.3% and 8.4% respectively. In terms of industries, 16 out of the 22 industry groups (as per 2-digit NIC-2004) in the manufacturing sector showed positive growth during the month of April 2015 as compared to the corresponding month of the previous year.

As per Use-based classification, the growth rates in April 2015 over April 2014 stood at 2.8% in Basic goods, 11.1% in Capital goods and 3.3% in Intermediate goods.  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%.

The IIP growth for March 2015 was scaled up to 2.5% in the first revision compared with 2.1% reported provisionally. The growth in January 2015 too was revised slightly upwards to 2.83% in the second and final revision compared with 2.77% at the first revision and 2.55% released provisionally.

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