India’s industrial production contracts 0.7% in August

Industrial production in the country, based on the general index of industrial production (IIP), declined 0.7 per cent in August 2016 continuing a declining trend that saw production fall 2.5 per cent in July 2016.

Industrial production had grown at a faster pace of 6.4 per cent in August 2015.

Cumulative growth of industrial production during April-August 2016 stood at (-) 0.3 per cent year-on-year.

Output of manufacturing, mining and electricity sectors showed growth rates of (-) 5.6 per cent, (-) 0.3 per cent and 0.1 per cent in August while cumulative growth in these three sectors during April-August 2016 stood at 0.6 per cent, (-) 1.2 per cent and 5.7 per cent, respectively.

Seven out of the 22 industry groups in the manufacturing sector have shown negative growth during August 2016. The industry group 'electrical machinery & apparatus' has shown the highest negative growth of (-) 49.4 per cent followed by 'furniture and manufacturing' (-) 22.4 per cent and 'wearing apparel, dressing and dyeing of fur' (-) 6.6 per cent.

On the other hand, 'radio, TV and communication equipment & apparatus' has shown the highest positive growth of 15.2 per cent, followed by 'other transport equipment' 14.6 per cent and 'basic metals' 12.4 per cent.

Basic goods production recorded a growth of 3.2 per cent while capital goods production expanded at (-) 22.2 per cent and intermediate goods production rose 3.6 per cent in August.