India's industrial output contracts by 0.1% in June 2017 to two-year low

Slipping into negative territory, India's industrial output growth contracted by 0.1 percent in June 2017 to touch a two-year-low, thanks to a slowdown in the manufacturing sector.
The Quick Estimates of the Index of Industrial Production (IIP) with base 20111-12 for June 2017, released by the Central Statistics Office of the Ministry of Statistics and Programme Implementation, said the General Index for the month stood at 119.1, which is 0.1 percent lower than the level in the same month of last year.
The cumulative growth for the period April-June 2017 over the corresponding period of the previous year stood at 2.0%, an official statement said, quoting the provisional data.
The statement said the Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for June 2017 stood at 98.8, 120.6 and 147.4, respectively, with the corresponding growth rates of 0.4%, (-) 0.4% and 2.1% as compared to June 2016.
The cumulative growth in these three sectors during April-June 2017 over the corresponding period of 2016 was 1.2%, 1.8% and 5.3%, respectively.
The statement said 15 of the 23 industry groups in the manufacturing sector showed negative growth during June 2017 as compared to the corresponding period of the previous year. 
The industry group ‘Manufacture of electrical equipment’ has shown the highest negative growth of (-) 20.1%, followed by (-) 11.1% in ‘Manufacture of fabricated metal products, except machinery and equipment’ and (-) 10.5% in ‘Printing and reproduction of recorded media’.
On the other hand, the industry group ‘Other manufacturing’ showed the highest growth of 28.1%, followed by 19.2% in ‘Manufacture of pharmaceuticals, medicinal chemical and botanical products’ and 11.7% in ‘Manufacture of furniture’.
The statement said the growth rates in June 2017 over June 2016 were (-) 0.2% in Primary goods, (-) 6.8% in Capital goods, (-) 0.6% in Intermediate goods and 0.6% in Infrastructure/ Construction Goods. 
Consumer durables and Consumer non-durables recorded growth of (-) 2.1% and 4.9%, respectively.
Items which registered high negative growth include ‘Water purification apparatus’ [(-) 68.4%], ‘Shelled cashew kernel, whether or not processed/ roasted/ salted’ [(-) 63.6%], ‘Electrical apparatus for switching or protecting electrical circuits (e.g switchgear, circuit breakers/switches, control/ meter panel)’ [(-) 48.6%], ‘Plastic jars, bottles and containers’ [(-) 48.1%], ‘Kerosene’ [(-) 39.0%], ‘Printing machinery’ [(-) 35.6%], ‘Tooth Paste’ [(-) 33.0%], ‘Air filters’ [(-) 28.9%], ‘Vaccine for veterinary medicine’ [(-) 28.8%] and ‘Cement Clinkers’ [(-) 22.2%].
Items which showed high positive growth during June 2017 over the same month in the previous year include ‘Digestive enzymes and antacids (incl. PPI drugs)’ (67.8%), ‘Construction machine/ equipment (incl. bull-dozers and road rollers)’ (36.8%), ‘Jewellery of gold (studded with stones or not)’ (34.7%), ‘Cut & Polished Diamonds’ (31.1%), ‘Axle’ (29.5%),’ Meters (electric and non-electric)’ (28.9%), ‘Pipes, tubes & casing of steel/iron’ (24.9%) and  ‘Aluminium Billets/ingots’ (22.6%).


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