India’s industrial production barely grew at 0.1% in January

Industrial production in the country as measured by the general index of industrial production (IIP) barely grew at 0.1 per cent in January 2014, compared to the level in January 2013, pulled down by sluggish growth in manufacturing and mining output, quick estimates by the Central Statistics Office (CSO) showed.

The marginal growth of 0.1 per cent in January follows contraction in industrial output for three months in a row. This was mainly on account of higher power generation and mining sector output, while manufacturing declined.

Cumulative growth of industrial production during April-January 2013-14 over the corresponding period of the previous year stood at 0.0 per cent against a 1 per cent growth recorded in the previous year period.

Production in mining, manufacturing and electricity sectors in January 2014 grew at 0.7 per cent, (-) 0.7 per cent and 6.5 per cent compared to January 2013. The three sectors have reported cumulative growth rates of (-) 1.5 per cent, (-) 0.4 per cent and 5.7 per cent, respectively during April-January 2013-14 over the corresponding period of 2012-13.

Eleven out of the 22 industry groups in the manufacturing sector have shown positive growth during January 2014 compared to the corresponding month of the previous year.

The industry group `medical, precision and optical instruments, watches and clocks' showed the highest positive growth of 17.6 per cent, followed by `electrical machinery and apparatus' (15.2 per cent) and 'wearing apparel, dressing and dyeing of fur' (14.4 per cent).

On the other hand, the industry group 'radio, TV and communication equipment and apparatus' showed a negative growth of (-) 28.2 per cent, followed by 'motor vehicles, trailers and semi-trailers' (- 14.0 per cent) and 'fabricated metal products, except machinery and equipment' (- 9.5 per cent).

Basic goods production grew 0.9 per cent in January 2014 while capital goods production declined by 4.2 per cent and intermediate goods production rose 3.4 per cent during the month.

Production of consumer durables and consumer non-durables recorded growth rates of (-) 8.3 per cent and 4.4 per cent, respectively in January, while overall production in consumer goods declined by 0.6 per cent during the month.

Some of the items showing high positive growth year-on-year during January 2014 included 'coir mats and mattings' (98.1 per cent), 'rubber insulated cable' (56.6 per cent), 'Room air-conditioners' (32.5 per cent), 'shipbuilding and repairs' (30.2 per cent), 'steel structures' (26.5 per cent), 'cashew kernels' (25.0 per cent), 'scooter and mopeds' (23.8 per cent), 'vitamins' (22.7 per cent), 'stainless/ alloy steel' (21.3 per cent) and 'antibiotics and its preparations' (21.2 per cent).

Some of the important items showing high negative growth included 'boilers' (- 50.4 per cent), 'H R sheets (- 48.5 per cent), 'earth moving machinery' (- 45.2 per cent), 'aluminium conductor' (- 43.2 per cent), 'grinding wheels' (- 38.9 per cent), 'carbon steel' (- 37.5 per cent), 'telephone instruments and mobile phones accessories' (- 30.7 per cent), 'generator/ alternator' (- 26.4 per cent), 'PVC pipes and tubes' (- 25.7 per cent), polyester chips' (- 24.4 per cent), 'commercial vehicles' (- 22.6 per cent) and 'aluminium wires and extrusions' (- 21.5 per cent).