IIP growth slows to 1.7 per cent in May

The Index of Industrial Production had jumped up by 2.79 per cent in April and 8 per cent in May, 2016.

" The General Index for the month of May 2017 stands at 124.3, which is 1.7 percent higher as compared to the level in the month of May 2016," read a government statement released on Wednesday.

"The cumulative growth for the period April-May 2017 over the corresponding period of the previous year stands at 2.3 percent," it said.

The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of May 2017 stand at 100.5, 125.1 and 158.7 respectively, with the corresponding growth rates of (-) 0.9 percent, 1.2 percent and 8.7 percent as compared to May 2016 (Statement I). The cumulative growth in these three sectors during April-May 2017 over the corresponding period of 2016 has been 1.1 percent, 1.8 percent and 7.1 percent respectively.

In terms of industries, twelve out of the twenty three industry groups (as per 2-digit NIC-2008) in the manufacturing sector have shown positive growth during the month of May 2017 as compared to the corresponding month of the previous year (Statement II).

The industry group ‘Manufacture of pharmaceuticals, medicinal chemical and botanical products’ has shown the highest positive growth of 24.5 percent followed by 24.4 percent in ‘Other manufacturing’ and 11.8 percent in ‘Manufacture of other transport equipment’.

On the other hand, the industry group ‘Manufacture of beverages’ has shown the highest negative growth of (-) 16.5 percent followed by (-) 15.1 percent in ‘Manufacture of motor vehicles, trailers and semi-trailers’ and (-) 15.0 percent in ‘Manufacture of electrical equipment’.

As per Use-based classification, the growth rates in May 2017 over May 2016 are 3.4 percent in Primary goods, (-) 3.9 percent in Capital goods, 0.7 percent in Intermediate goods and 0.1 percent in Infrastructure/ Construction Goods (Statement III). 

The Consumer durables and Consumer non-durables have recorded growth of (-) 4.5 percent and 7.9 percent respectively.

Some important items showing high positive growth during the current month over the same month in previous year include ‘Digestive enzymes and antacids (incl. PPI drugs)’ (90.5%), ‘Textile machinery’ (51.8%), ‘Meters (electric and non-electric)’ (48.7%), ‘Jewellery of gold (studded with stones or not)’ (36.7%), ‘Industrial Valves of different types- safety, relief and control valves(non-electronic, non-electrical)’ (32.8%), ‘Telephones and mobile instruments’ (29.2%), ‘Aluminium Billets/ingots’ (23.6%) and ‘Tea’ (21.8%).

7. Some important items that have registered high negative growth include ‘API & formulations of hypo-lipidemic agents incl. anti-hyper-triglyceridemics; anti-hypertensive’ [(-) 72.8%], ‘Air filters’ [(-) 63.7%], ‘Shelled cashew kernel, whether or not processed/ roasted/ salted’ [(-) 63.3%], ‘Axle’ [(-) 47.0%], ‘Plastic jars, bottles and containers’ [(-) 41.1%], ‘Kerosene’ [(-) 40.6%], ‘Rice (excluding basmati)’ [(-) 36.1%],   ‘Tooth Paste’ [(-) 33.8%], ‘API & formulations of vitamins’ [(-) 32.0%], ‘Electrical apparatus for switching or protecting electrical circuits (e.g switchgear, circuit breakers/switches, control/ meter panel)’ [(-) 29.5%], ‘Commercial Vehicles’ [(-) 26.5%] and ‘Beer & other undistilled and fermented alcoholic liqueurs other than wines’ [(-) 24.9%].