Industrial production growth in India slows to 3.4% in June

Industrial production in the country grew at a slower pace of 3.4 per cent in June 2014, down from the 4.7 per cent growth recorded in May this year, provisional estimates released by the Central Statistics Office show.

Industrial output as measured by the index of industrial production (IIP) had grown 2.2 per cent in June last year, while IIP data for May had shown robust growth of 4.7 per cent growth.

Cumulative growth of industrial production for April-June 2014-15 over the corresponding period of the previous year stands at 3.9 per cent.

Production in the mining, manufacturing and electricity sectors in June this year recorded growth rates of 4.3 per cent, 1.8 per cent and 15.7 per cent, respectively, compared to June 2013 levels.

Cumulative growth in the three sectors during April-June 2014-15 over the corresponding period of 2013-14 stood at 3.2 per cent, 3.1 per cent and 11.3 per cent, respectively.

Fifteen out of the 22 industry groups in the manufacturing sector showed positive growth during June 2014 compared to the corresponding month of the previous year.

The industry group 'electrical machinery and apparatus' has shown the highest positive growth of 69.2 per cent, followed by 10.3 per cent in 'luggage, handbags, saddlery, harness and footwear; tanning and dressing of leather products' and 9.8 per cent on 'other non-metallic mineral products'.

On the other hand, the industry group 'radio, TV and communication equipment and apparatus' showed the highest negative growth of (-) 62.9 per cent, followed by 'office, accounting and computing machinery' (-)60.5 and 'Furniture manufacturing' (-) 13.4 per cent.

Basic goods production increased 9 per cent year-on-year in June 2014 compared to levels in June 2013 while capital goods production increased by 23.0 per cent and intermediate goods production increased 2.7 per cent.

Production of consumer durables and consumer non-durables recorded growth of (-) 23.4 per cent and 0.1 per cent, respectively, with the overall growth in consumer goods being (-) 10 per cent.

Some of the important items showing high positive growth during June 2014 over the same month in previous year include copper and copper products, rubber-insulated cable, vitamins (103 per cent), relays, fuses and switchgears (65 per cent), ayurvedic medicaments, room air-conditioner, stainless/alloy steel, scooter and mopeds and biaxially oriented polypropylene (BOPP) film.

Some of the other important items that showed high negative growth included sugar, telephone instruments (including mobile phones and accessories), computers, aluminium conductors, wooden furniture, woollen carpets, earth moving machinery, boilers, gems and Jewellery and lubricating oil.

The CSO also revised the quick estimates of the index for May 2014 in the light of updated data received from the source agencies and it will undergo final revision in August.