India’s industrial production down 2.2 per cent in June

12 Aug 2013

India's industrial production contracted 2.2 per cent in June on top of a 2.9 per cent output fall in the previous month, pulled down by a continued decline in manufacturing output.

Industrial production in the country based on the index of industrial production (IIP) declined by 2.2 per cent in June this year, quick estimates released by the Central Statistical Office (CSO) showed.

Cumulative growth of industrial production for the first quarter of the current financial year (April-June 2013-14) also was down 1.1 per cent (-1.1%) over the corresponding period of the previous year.

Manufacturing production, which accounts about 76 per cent of the country's industrial output, shrank 2.2 per cent from a year earlier; mining sector output fell 4.1 per cent (-4.1%) and electricity generation recorded nil growth, data revealed.

The three sectors recorded cumulative growth rates of (-) 4.5 per cent, (-) 1.2 per cent and 3.5 per cent, respectively, year-on-year during April-June 2013-14.

Thirteen of the 22 industry groups in the manufacturing sector showed negative growth year-on-year during June 2013. Among these, the industry group 'furniture; manufacturing' showed the highest negative growth of (-) 23.8 per cent, followed by 14.2 per cent decline in production of 'medical, precision and optical instruments, watches and clocks' and a 13.7 per cent decline in the production of 'motor vehicles, trailers and semi-trailers'.

On the other hand, the industry group 'wearing apparel, dressing and dyeing of fur' showed positive growth of 31.8 per cent followed by 7.6 per cent growth in 'chemical and chemical products' and 7.2 per cent growth in 'electrical machinery and apparatus'.

Capital goods production, which is used to measure the level of investment in the economy, contracted 6.6 per cent in June. Basic goods production declined by 1.9 per cent (-1.9%) during the month while production of intermediate goods rose 1.1 per cent year-on-year in June 2013.

Production of consumer durables and consumer non-durables recorded growth of rates of (-) 10.5 per cent and 5.0 per cent, respectively, with the overall growth in consumer goods being (-) 2.3 per cent.