India’s industrial production grows 3.4% in April

Industrial production in the country grew 3.4 per cent in April, the first month of the current fiscal, raising hopes of recovery after contracting for two months in a row, quick estimates of the index of industrial production released by the Central Statistics Office (CSO) showed.

The growth in output was mainly due to improved performance of manufacturing, mining and power sectors and higher output of capital goods.

Output as measured by the index of industrial production (IIP) had grown at 1.5 per cent in April 2013, while IIP data for March remained almost unchanged at 0.5 per cent after revision of the provisional estimates released last month, CSO stated.

The general index of industrial production for April 2014 was up 3.4 per cent in April 2014 compared to the level in April 2013.

The cumulative growth for the period April-March 2013-14, however, showed a declining trend at (-) 0.1 per cent over the corresponding period of the previous year.

The indices of production for the mining, manufacturing and electricity sectors for April 2014 recorded growths of 1.2 per cent, 2.6 per cent and 11.9 per cent, respectively, compared to April 2013.

The three sectors recorded cumulative growth rates of (-) 0.6 per cent, (-) 0.8 per cent and 6.1 per cent, respectively, in the three sectors during April-March 2013-14 over the corresponding period of 2012-13.

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

The industry group 'electrical machinery and apparatus' has shown the highest positive growth of 66 per cent, followed by 'machinery and equipment' 9.6 per cent and 'tobacco products' 9.1 per cent.

On the other hand, the industry group 'radio, TV and communication equipment and apparatus' has shown the highest negative growth of (-) 31.6 per cent, followed by   'Wearing apparel and dressing and dyeing of fur' (-) 22.1 per cent and 'motor vehicles, trailers and semi-trailers' (-) 14.6 per cent.

Basic goods production increased 6.8 per cent in April 2014 while capital goods production increased by 15.7 per cent and production of intermediate goods increased by 4.4 per cent.

Production of consumer durables and consumer non-durables registered growth rates of (-) 7.6 per cent and (-) 3.3 per cent, respectively, while the overall growth in consumer goods was (-) 5.1 per cent.

Some of the important items showing high positive growth year-on-year during April 2014 include 'rubber-insulated cable (267.1 per cent), `copper and copper products' (75.4 per cent), 'ayurvedic medicaments' (70.4 per cent), 'sugar (including sugar cubes) (53.1 per cent, 'leather garments' (45.5 per cent), 'stainless/ alloy steel' (39.4 per cent), 'cigarettes' (31.3 per cent, 'steel structures' (29.1 per cent), 'scooter and mopeds' (28.0 per cent), 'terry towels' (27.7 per cent and 'biaxially oriented polypropylene (BOPP) films' (27.2 per cent.

Some of the other important items showing high negative growth included: 'aluminium conductor' (-) 51.1 per cent, 'sacking' (-) 48.8 per cent, 'telephone instruments (incl. mobile phones and accessories)' (-) 36.4 per cent, 'cashew kernels' (-) 35.4 per cent, Apparels' [(-) 27.3 per cent 'antibiotics and its preparations' [(-) 25.2 per cent, 'tea' (-) 24.4 per cent, 'generator/ alternator' [(-) 23.4 per cent and 'commercial vehicles' (-) 22.9 per cent.