Industrial production expanded 5.7% in Nov despite demonetisation woes

14 January 2017

Industrial production in India increased at a decent 5.7 per cent in November despite the shock 8 November demonetisation of high value bank notes by the government, against a 1.9 per cent fall in the previous month and a 3.4 per cent decline in November 2015.

Cumulative growth in industrial production during April-November 2016, however, is lower at 0.4 per cent.

Production for the mining, manufacturing and electricity sectors increased by 3.9 per cent, 5.5 per cent and 8.9 per cent, respectively, in November 2016 while the cumulative growth rate in these three sectors during April-November 2016 stood at 0.3 per cent, (-) 0.3 per cent and 5.0 per cent, respectively.

Sixteen out of the 22 industry groups in the manufacturing sector have shown positive growth during November 2016. The industry group 'radio, TV and communication equipment and apparatus' has shown the highest positive growth of 32.2 per cent, followed by 'electrical machinery and apparatus' (23.2 per cent) and 'motor vehicles, trailers and semi-trailers' (23.2 per cent).

On the other hand, the 'furniture and manufacturing' group has shown the highest negative growth of (-) 16.5 per cent followed by 'office, accounting and computing machinery' (- 5.2 per cent) and 'tobacco products' (-3.2 per cent).

Production of basic goods increased by 4.7 percent while capital goods production increased by 15 per cent and intermediate goods  production increased by 2.7 per cent in November 2016.

Production of consumer durables and consumer non-durables have recorded growth rates of 9.8 per cent and 2.9 per cent, respectively, with the overall growth in consumer goods being 5.6 per cent.

Some important items showing high positive growth year-on-year during November 2016 include 'rubber insulated cable' (185 per cent), 'tractors'  (95 per cent), 'telephone instruments including mobile phone and accessories' (42.8 per cent), 'passenger cars' (29.5 per cent), 'aviation turbine fuel' (28.3 per cent), 'plastic machinery including moulding machinery' (24.1 per cent) and 'sugar' (21.2 per cent).

Some important items that have registered high negative growth include 'H R Sheets' (-49.7 per cent), 'kerosene' (- 35.7 per cent), molasses' (- 26.2 per cent), 'gems and jewellery' (- 25.4 per cent), 'polypropylene (- 23.1 per cent) and 'sugar machinery' (- 20.4 per cent).

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