Industrial production grew at a 5-month high of 3.8% November

13 January 2015

Industrial production in the country grew at 3.8 per cent in November 2014, the fastest pace in 5 months, on the back of improvement in manufacturing and mining sectors as well as better offtake of capital goods.

Industrial production, as measured by the index of industrial production (IIP), had declined by 1.3 per cent in the same month of the previous year.

For the April-November period of the 2014-15 fiscal, IIP had expanded at 2.2 per cent, as against 0.1 per cent in same period of last fiscal, showing signs of an economic recovery.

The revised figure for October last year, which showed a contraction of 4.2 per cent, remained unchanged, according to data released by Central Statistics Office on Monday.

Production in the mining, manufacturing and electricity sectors expanded at 3.4 per cent, 3.0 per cent and 10.0 per cent, respectively, compared to November 2013.

The three sectors showed cumulative growth rates of 2.5 per cent, 1.1 per cent and 10.7 per cent, respectively, during April-November 2014-15 over the corresponding period of 2013-14.

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

These include: wearing apparel, dressing and dyeing of fur (19.8 per cent); motor vehicles, trailers and semi-trailers (17.5 per cent); and fabricated metal products, except machinery and equipment (12.8 per cent).

On the other hand, the industry group radio, TV and communication equipment and apparatus showed the highest negative growth of (- 60.0 per cent), followed by office, accounting and computing machinery (- 26.3 per cent) and tobacco products (- 17.4 per cent).

Basic goods production grew 7.0 per cent in November 2014, while capital goods output rose 6.5 per cent and intermediate goods production expanded at 4.3 per cent. 

Among consumer goods, durables and non-durables recorded growth rates of -14.5 per cent and 6.0 per cent, respectively, with the overall growth in consumer goods being - 2.2 per cent.

Some of the important items that showed high positive growth during November 2014 over the same month in previous year include H R sheets (240.8 per cent), aluminium conductor (115.0 per cent), room air-conditioner (53.8 per cent), sugar (49.5 per cent), three-wheelers, including passenger and goods carriers, (42.5 per cent), leather garments (40.3 per cent), ayurvedic medicaments (35.3 per cent), stampings and forgings (34.1 per cent), scooter and mopeds (30.7 per cent), stainless/ alloy steel (26.5 per cent), cotton cloth (23.8 per cent), rice (23.0 per cent) and commercial vehicles (20.0 per cent).

Some of the important items that showed high negative growth are: telephone instruments, including mobile phones and accessories (-67.3 per cent), ship building and repairs (- 41.1 per cent), wood furniture (- 41.1 per cent), sugar machinery (-40.9 per cent), cement machinery (- 38.9 per cent),  glass sheet (-30.1 per cent), generator/alternator (- 28.6 per cent), lubricating oil (- 27.1 per cent), cigarettes (- 23.3 per cent) and antibiotics and its preparations (- 20.7 per cent).

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