India’s industrial production growth accelerates to 7.1% in December

Industrial production in India, based on the general index of industrial production (IIP), expanded at a robust 7.1 per cent in December 2017, amidst a sharp uptick in manufacturing activity. Industrial production grew at a cumulative 3.7 per cent in April-December 2017-18.

Production in the mining, manufacturing and electricity sectors expanded at 1.2 per cent, 8.4 per cent and 4.4 per cent, respectively, in December 2017 while cumulative growth in these three sectors during April-December 2017 stood at 2.8 per cent, 3.8 per cent and 5.1 per cent, respectively.

Sixteen out of the 23 industry groups in the manufacturing sector have shown growth during December 2017 compared with the corresponding month of the previous year. The industry group 'manufacture of other transport equipment' has shown the highest growth rate of 38.3 per cent, followed by 'manufacture of pharmaceuticals, medicinal chemical and botanical products' 33.6 per cent and 'manufacture of computer, electronic and optical products' (29.8 per cent).

On the other hand, the industry group 'manufacture of tobacco products' has shown the highest negative growth of (-) 28.2 per cent followed by 'Other manufacturing' (-) 22.3 per cent and 'manufacture of electrical equipment' (-) 14.9 per cent.

Primary goods production grew 3.7 per cent in December 2017, while capital goods production increased by 16.4 per cent and production of intermediates grew 6.7 per c4ent during the month.

Consumer durables and consumer non-durables have recorded growth of 0.9 per cent and 16.5 per cent, respectively.

Some important item groups showing high growth during the current month over the same month in previous year include 'bodies of trucks, lorries and trailers' (254.1 per cent, 'API and formulations of hypo-lipidemic agents including anti-hyper-triglyceridemics (eg, simvastatin, atorvastatin, etc), anti-hypertensive' (250.4 per cent), 'ship building and parts thereof' (144.1 per cent),'digestive enzymes and antacids, including PPI drugs' (88.4 per cent), 'meters (electric and non-electric)' (77.1 per cent),'separators including decanter centrifuge' (67.8 per cent), 'Axle' (48.7 per cent), 'commercial vehicles' (40.6 per cenmt), 'two-wheelers' (36.0 per cent) and 'cement-all types' (20.4 per cent).

Some important item groups that have registered high negative growth include 'electric heaters' (- 91.8 per cent), 'jwellery of gold (studded with stones or not)' (-72.1 per cent), 'Hand Tools, including interchangeable tools, not mechanised' (- 63.2 per cent), 'other tobacco products' (- 50.0 per cent), 'plastic jars, bottles and containers' (-38.1 Per cen0,'bags/pouches of HDPE/ LDPE (plastic)' (- 35.6 per cent], 'medical/ surgical accessories' (- 34.3 per cent), plastic components of packing/ closing/ bottling articles and electrical fittings' (-28.3 per cent), 'material handling, lifting and hoisting equipment' (- 27.7 per cent), 'paper of all kinds, excluding newsprint' (- 26.8 per cent), 'telephones and mobile instruments' (- 25.7 per cent0 and 'Readymade Garments, knitted' (- 22.5 per cent), according to official data.