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India’s industrial production growth slips to 3.1% in May
Jul-15-2019

With subdued performance of mining and manufacturing sector, India’s industrial production measured by Index of Industrial Production (IIP), which gauges production in the industrial sector for a given period of time, slipped to 3.1% in May 2019, as compared to 3.8% growth in May 2018. The index grew at 4.3% in April 2019 and 0.4% in March 2019. 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 May 2019 stood at 133.6, which was 3.1% higher as compared to the level in the month of May 2018. The cumulative growth for the period April-May 2019 over the corresponding period of the previous year stood at 3.7%.

On the sectoral front, the expansion in the mining sector was merely 3.2% in May, as compared to 5.8% in the year-ago month. Similarly, the growth in the manufacturing sector was also subdued at 2.5% in May, compared to 3.6% in the corresponding month of the last fiscal. However, the power generation grew at 7.4% in May, against 4.2% in same month last year. The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of May 2019 stand at 111.0, 133.3 and 176.9 respectively. The cumulative growth in these three sectors during April-May 2019 over the corresponding period of 2018 has been 4.1%, 3.2% and 6.7%, respectively.

The capital goods output, which is a barometer of investment, grew at 0.8% compared to 6.4% in May last year. As per Use-based classification, the growth rates in May 2019 over May 2018 were 2.5% in Primary goods, 0.6% in Intermediate goods and 5.5% in Infrastructure/ Construction Goods. The Consumer durables and Consumer non-durables have recorded growth of (-) 0.1% and 7.7% respectively.

In terms of industries, 12 out of the 23 industry groups in the manufacturing sector have shown positive growth during the month of May 2019 as compared to the corresponding month of the previous year. The industry group ‘Manufacture of wood and products of wood and cork, except furniture; manufacture of articles of straw and plaiting materials’ has shown the highest positive growth of 24.8% followed by 15.9% in ‘Manufacture of food products’ and 9.4% in ‘Manufacture of computer, electronic and optical products’. On the other hand, the industry group ‘Manufacture of paper and paper products’ has shown the highest negative growth of (-) 12.2% followed by (-) 9.9% in ‘Manufacture of furniture’ and (-) 8.7% in ‘Manufacture of fabricated metal products, except machinery and equipment’.
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