Industrial production contracts 1.6% in May

Industrial production in the country unexpectedly contracted by 1.6 per cent in May 2013, compared to May 2013, after showing 2.3 per cent growth in the previous month, amidst continuing weakness in the economy and a slowing of consumer demand.

The general index of industrial production having its base 2004-05=100 for May 2013 stood at 167.6, down 1.6 per cent from the level in May 2012, quick estimates provided by the Central Statistics Office (CSO) showed.

Cumulative growth of industrial production during April-May 2013-14 showed a marginal growth of 0.1 per cent over the growth rate in the corresponding period of the previous year.

Production in the eight core industries, which account for nearly 40 per cent of the index of industrial production also slowed to 2.3 per cent in May from 2.4 per cent in April.

The Indian economy also is estimated to have grown at its slowest annual pace in a decade in the fiscal year that ended in March.

Production indices for the mining, manufacturing and electricity sectors stood at 122.6, 175.4 and 172.4, respectively, in May, showing growth rates of (-) 5.7 per cent, (-) 2.0 per cent and 6.2 per cent year-on-year.

The three sectors showed cumulative growth of (-) 4.5 per cent, 0.1 per cent and 5.3 per cent, respectively, during April-May 2013-14 over the corresponding period of 2012-13.

Eleven out of the 22 industry groups in the manufacturing sector have shown negative growth during May 2013 compared to the corresponding month of the previous year.

The industry group 'office, accounting and computing machinery' showed the highest negative growth of 30 per cent, followed by 'radio, TV and communication equipment and apparatus' (26.1 per cent) and `tobacco products' (21 Per cent) during May 2013.

On the other hand, the industry group 'furniture and manufacturing' showed a positive growth of 18.7 per cent, followed by 'wearing apparel, dressing and dyeing of fur' (14.3 per cent) and 'coke, refined petroleum products and nuclear fuel' 10.5 per cent during the month.

Basic goods production declined by 0.4 per cent (10.4 per cent) in May while production of capital goods and intermediate goods showed growth rates of (-) 2.7 per cent and 1.5 per cent, respectively.

Production of consumer durables and consumer non-durables showed growth rates of (-) 10.4 per cent and 1.7 per cent, respectively, with the overall growth in consumer goods declining to (-) 4 per cent in May.

Major items that showed negative growth during May 2013 included 'fruit pulp' (- 51.1 per cent), 'sugar, including sugar cubes' (- 37.8 per cent), 'cigarettes' (-35.7 per cent), 'polyester chips' (-26.6 per cent), 'copper and copper products' (-67.3 per cent), 'boilers' (-32.9 per cent), 'earth moving machinery' (-30.3 per cent), 'sugar machinery' (-70.2 per cent), 'plastic machinery, including moulding machinery' (-48.0 per cent), 'computers' (-33.0 per cent) and 'telephone instruments, including mobile phones and accessories' (-28.6 per cent).

Some of the other important items that showed high positive growth are: 'leather garments' (27.0 per cent), 'aviation turbine fuel' (32.5 per cent), 'vitamins' (75.7 per cent), 'antibiotics and its preparations' (33.2 per cent), 'PVC pipes and tubes' (31.0 per cent), 'tractors' (31.3 per cent), 'rubber-insulated cable' (56.6 per cent) and 'gems and jewellery' (31.3 per cent).