India’s industrial production expands 4.2% in July

Industrial production in the country, based on the general index of industrial production (IIP), increased by 4.2 per cent in July 2015, compared to the level of production in July 2014, quick estimates released by the Central Statics Organisation (CSO) showed.

Cumulative growth of production for the period April-July 2015-16 over the corresponding period of the previous year stands at 3.5 per cent.

Production in the mining, manufacturing and electricity sectors increased by 1.3 per cent, 4.7 per cent and 3.5 per cent, respectively in July 2015 compared with the corresponding levels in July 2014.

Cumulative growth of production in the three sectors during April-July 2015-16 over the corresponding period of 2014-15 stands at 0.6 per cent, 4.0 per cent and 2.6 per cent, respectively.

Twelve out of the 22 industry groups in the manufacturing sector have shown positive growth during July 2015 compared to the corresponding month of the previous year.

The industry group 'furniture, manufacturing' has shown the highest positive growth of 69.3 per cent, followed by 'wearing apparel, dressing and dyeing of fur' 21.7 per cent and 'electrical machinery and apparatus' 20.9 per cent.

On the other hand, the industry group 'office, accounting and computing machinery' has shown the highest negative growth of (-) 14.8 per cent, followed by 'food products and beverages' (-) 12.1 per cent in and 'publishing, printing and reproduction of recorded media' (-) 9.5 per cent.

Basic goods production increased by 5.2 per cent while capital goods production rose 10.6 per cent and output of intermediate goods was up 1.5 per cent.

Production of consumer durables and consumer non-durables recorded growth rates of 11.4 per cent and (-) 4.6 per cent, respectively, while the overall growth in consumer goods stood at 1.3 per cent.

Some of the important items showing high positive growth during the current month over the same month in previous year include 'molasses' (280.5 per cent), 'gems and jewellery' (156.1 per cent), 'H R Sheets' (150.9 per cent), 'Aluminium conductor' (52.8 per cent), 'rice' (37.9 per cent), 'cigarettes' (37.8 per cent), 'polypropylene (including co-polymer)' (36.7 per cent), 'propylene' (30.9 per cent), 'carbon steel' (25.5 per cent), 'leather garments' (21.8 per cent), 'apparels' (21.7 per cent) and 'rubber insulated cable' (20.9 per cent).

Some of the important items showing high negative growth included: 'instant food mixes (ready-to-eat)' (- 49.0 per cent), ' room air-conditioner' (- 44.7 per cent), 'grinding wheel' (- 40.3 per cent), 'colour TV sets' (- 35.4 per cent), 'antibiotics and its preparations' (- 26.8 per cent), 'furnace oil' (- 25.8 per cent), 'boilers' (- 24.7 per cent), 'synthetic yarn' (- 22.9 per cent) and 'aerated waters and soft drinks' (- 21.2 per cent).

However, growth rates in respect of individual items may not reflect their actual contribution in the overall growth rate of IIP. Taking into account the weights of different items, the overall growth rate of IIP can be decomposed into positive and negative contributions of different items.