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Industrial growth slows down to 3-month low of 4.3% in August
Oct-15-2018

With a sharp decline in the mining sector output and poor offtake of capital goods, India’s industrial production measured by Index of Industrial Production (IIP) slowed down to a three-month low of 4.3% in the month of August 2018, as compared to 6.6% in the previous month and 4.8% in the same of last year. The industrial growth is the lowest since May when industrial production grew at 3.9%.

As per the data released by the Central Statistics Office of the Ministry of Statistics and Programme Implementation, (IIP) with base 2011-12 for the month of August 2018, stood at 127.4, which is 4.3% higher as compared to the level in the month of August 2017. The cumulative growth for the period April-August 2018 over the corresponding period of the previous year stands at 5.2%.

On the sectoral basis, the mining sector production contracted by 0.4% in August compared to a growth of 9.3% in the year-ago month. Power generation grew at the rate of 7.6% in the month as against 8.3% in the year-ago month. However, the manufacturing sector output grew at 4.6% in August compared to 3.8% a year ago. The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of August 2018 stand at 92.2, 129.8 and 167.2 respectively. The cumulative growth in these three sectors during April-August 2018 over the corresponding period of 2017 has been 3.9%, 5.4% and 5.8% respectively.

Besides, the capital goods output growth decelerated to 5% during the month from a 7.3% expansion year ago. As per Use-based classification, the growth rates in August 2018 over August 2017 are 2.6% in primary goods, 2.4% in intermediate goods and 7.8% in Infrastructure/ Construction Goods. The consumer durables and consumer non-durables have recorded growth rates of 5.2% and 6.3% respectively.

In terms of industries, 16 out of the 23 industry groups in the manufacturing sector have shown positive growth during the month of August 2018 as compared to the corresponding month of the previous year. The industry group ‘Manufacture of furniture’ has shown the highest positive growth of 29.2% followed by 18.9% in ‘Manufacture of wearing apparel’ and 12.7% in ‘Manufacture of wood and products of wood and cork, except furniture; manufacture of articles of straw and plaiting materials’. On the other hand, the industry group ‘Printing and reproduction of recorded media’ have shown the highest negative growth of (-) 19.2% followed by (-) 17.0% in ‘Manufacture of tobacco products’ and (-) 7.3% in ‘Manufacture of computer, electronic and optical products’.
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