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India’s industrial output accelerates to six-month high of 3.4% in April
Jun-13-2019

After hitting 21-month low in March, India’s industrial production measured by Index of Industrial Production (IIP) picked up space and accelerated to a six-month high of 3.4% in April mainly on account of improvement in mining and power generation. The IIP had expanded by 4.5% in April 2018. The previous high in IIP growth was recorded at 8.4% in October 2018. 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 April 2019 stood at 126.8, which was 3.4% higher as compared to the level in the month of April 2018. The cumulative growth for the period April-March 2018-19 over the corresponding period of the previous year stood at 3.6%.

On the sectoral front, the manufacturing segment, which constitutes the bulk of the IIP at 77.6%, received a bump in April, rising by 2.8%. The two other sectors in the IIP - electricity and mining - also recovered in April. Electricity generation rose 6.0% in April, more than the 2.16% rise in March. On the other hand, mining output grew by 5.1% in April, against a slight 0.83% rise in the previous month and 3.8% in the year-ago month. The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of April 2019 Stood at 107.8, 126.6 and 162.9 respectively. The cumulative growth in these three sectors during April-March 2018-19 over the corresponding period of 2017-18 has been 2.9%, 3.6% and 5.2%, respectively.

The growth in capital goods segment, barometer of investment activities, slowed sharply to 2.5% from a high of 9.8% in April 2018. As per Use-based classification, the growth rates in April 2019 over April 2018 are 5.2% in Primary goods, 1.0% in Intermediate goods and 1.7% in Infrastructure/ Construction Goods. The Consumer durables and Consumer non-durables have recorded growth of 2.4% and 5.2%, respectively.

In terms of industries, 14 out of the 23 industry groups in the manufacturing sector have shown positive growth during the month of April 2019 as compared to the corresponding month of the previous year. The industry group ‘Manufacture of wearing apparel’ has shown the highest positive growth of 33.6% followed by 22.6% in ‘Manufacture of wood and products of wood and cork, except furniture; manufacture of articles of straw and plaiting materials’ and 16.3% in ‘Printing and reproduction of recorded media’. On the other hand, the industry group ‘Manufacture of paper and paper products’ has shown the highest negative growth of (-) 12.3% followed by (-) 9.6% in ‘Manufacture of fabricated metal products, except machinery and equipment’ and (-) 3.5% in ‘Manufacture of other transport equipment’.
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