Industrial growth shows signs of recovery at 2.6% in July

Industrial production in the country rose to 2.6 per cent in July 2013, the highest since March 2013, giving some hope of a revival in the second quarter of the current financial year.

The index of industrial production for July 2013 stood at 171.5, up 2.6 per cent compared to its level in July 2012. The cumulative growth for the period April-July 2013-14 over the corresponding period of the previous year, however, stood at (-) 0.2 per cent.

Production in the manufacturing and electricity sectors expanded by 3.0 per cent and 5.2 per cent, respectively, in July 2013 while mining output registered negative growth at (-) 2,3 per cent.

The cumulative year-on-year growth rates during April-July 2013-14 were negative for the mining and manufacturing sectors at (-) 4.0 per cent and (-) 0.2 per cent, respectively, while electricity generation recorded a 3.9 per cent growth over the corresponding period of 2012-13.

Eleven out of the 22 industry groups in the manufacturing sector showed positive growth during July 2013 compared to the corresponding month of the previous year.

The industry group 'electrical machinery and apparatus' showed the highest positive growth of 83.6 per cent, followed by apparel, dressing and dyeing of fur (44.0 per cent) and luggage, handbags, saddlery, harness and footwear; tanning and dressing of leather products (16.5 per cent).

On the other hand, the industry group radio, TV and communication equipment and apparatus showed a negative growth of 20.8 per cent, followed by furniture and manufacturing (11.3 per cent) and machinery and equipment (10.6 per cent).

Basic goods production grew 1.7 year-on-year in July while production of capital goods and intermediate goods recorded growth rates of 15.6 per cent and 2.4 per cent, respectively, during the month.

Among consumer goods, production of consumer durables registered a negative growth at (-) 9.3 per cent while production of consumer non-durables recorded a growth of 6.8 per cent. The overall growth rate in consumer goods, however, was a negative 0.9 per cent in July 2013.

Some of the important items that showed high positive growth in production during July 2013 over July 2012 include rubber insulated cable (336 per cent), leather garments (62.6 per cent), vitamins (61.8 per cent), ship building and repairs (58.7 per cent), fruit pulp (50.5 per cent), ayurvedic medicaments (44.6 per cent), apparels (39.8 per cent), purified terephthalic acid (29.6 per cent) and cashew kernels (23.2 per cent).

Some of the important items that showed high negative growth include earth moving machinery (- 42.6 per cent), generator/ alternator (- 42.0 per cent), plastic machinery, including moulding machinery (- 40.7 per cent), boilers (- 36.6 per cent),  room air conditioners (- 30.8 per cent), grinding wheels(-29.4 per cent), sugar machinery (- 27.9 per cent), small transformers (- 22.7 per cent), telephone instruments, including mobile phones and accessories (- 21.5 per cent) and gems and jewellery (- 20.5 per cent).

Meanwhile, the CSO has revised the IIP for June 2013 in the light of revised indices for June while those for April 2013 have undergone final revision.