India’s industrial production growth hit a 5-month low of 0.4% in August

Industrial production in the country expanded at 0.4 per cent in August, hitting a five-month low, on the back of a decline in manufacturing activity and lower offtake of consumer goods.

The Growth of industrial production, as measured by the index of industrial production (IIP), had shown a cumulative growth of 2.8 per cent in April-August 2014-15, according to data released by the Central Statistics Office today.

The CSO also revised the IIP for July downwards to 0.41 per cent, from the provisional estimates of 0.5 per cent released last month.

Production in the mining, manufacturing and electricity sectors showed growth rates of 2.6 per cent, (-) 1.4 per cent and 12.9 per cent in August 2014, compared to corresponding growth rates of 2.6 per cent, (-) 1.4 per cent and 12.9 per cent in August 2013,

Cumulative growth of production in the three sectors during April-August 2014-15 over the corresponding period of 2013-14 stood at 2.5 per cent, 1.8 per cent and 11.7 per cent, respectively.

Manufacturing, which constitutes over 75 per cent of the index, contracted by 1.4 per cent in August, compared to 0.2 per cent decline in output a year ago.

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

The industry group 'basic metals' has shown the highest positive growth of 19.1 per cent, followed by 14.3 per cent in 'Other transport equipment' and 10.9 per cent in 'luggage, handbags, saddlery, harness and footwear, tanning and dressing of leather products'.

On the other hand, the industry group 'radio, TV and communication equipment and apparatus' has shown the highest negative growth of (-) 48.8 per cent, followed by `office, accounting and computing machinery' (-) 43.9 per cent and 'electricity machinery and apparatus. (-) 17.8 per cent.
 
Basic goods production showed a growth of 9.6 per cent while capital goods production showed a negative growth of (-) 11.3 per cent in and intermediate goods showed a meager 0.3 per cent growth in August.

Among consumer goods, production of durables and non-durables recorded growth rates of (-) 15 per cent and (-) 0.9 per cent, respectively, with the overall growth in consumer goods at (-) 6.9 per cent.

Consumer goods production contracted by 6.9 per cent in August against 0.9 per cent decline a year ago. For April-August, the segment showed contraction of 4.9 per cent, compared to a decline of 1.6 per cent in the same period of 2013-14.

The consumer durables segment declined by 15 per cent in August, as against a dip of 8.3 per cent a year ago. For April-August, it declined 12.9 per cent as against a dip of 11.2 per cent in the five month period of last fiscal.

Consumer non-durable goods output too declined by 0.9 per cent in August, compared to 5.4 per cent growth in same month last year. During April-August, the segment grew 0.9 per cent compared to 6.8 per cent growth in same period last fiscal.