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India’s September IIP increases 3.6 percent

India Coal Market Watch

 November 13: India’s Index of Industrial Production (IIP) with base 2004-05 for the month of September 2015 stood at 178.0%, up 3.6% compared to the level in the month of September 2014, an official release said.

 The cumulative growth for the period April-September 2015-16 over the corresponding period of the previous year stands at 4.0%.

 The indices of industrial production the mining, manufacturing and electricity sectors in September stood at 118.8, 186.7 and 195.7 respectively showing growth rates of 3%, 2.6% and 11.4% as compared to same month of 2014.

 The cumulative growth in the three sectors during April-September 2015-16 over the corresponding period of 2014-15 has been 1.5%, 4.2% and 4.5% respectively.

 Of the total 20 industry groups that are monitored in the manufacturing sector, 11 have shown positive growth during the month of September 2015 as compared to the corresponding month of the previous year.

 The industry group ‘furniture: manufacturing n.e.c.’ has shown the highest positive growth of 69.9%, followed by 21.6% in ‘electrical machinery & apparatus n.e.c.’ and 9.8% in ‘Chemicals and chemical products’.

 On the other hand, the industry group ‘publishing, printing & reproduction of recorded media’ has shown the highest negative growth of (-) 13.3%, followed by (-) 12.8% in ‘wearing apparel; dressing and dyeing of fur’ and (-) 12.8% in ‘medical, precision & optical instruments, watches and clocks’.

 As per use-based classification, the growth rates in September 2015 over September 2014 are 4.0% in basic goods, 10.5% in capital goods and 2.1% in intermediate goods. The consumer durables and consumer non-durables have recorded growth of 8.4% and (-) 4.6% respectively, with the overall growth in Consumer goods being 0.6%.

 Some of the important items showing high positive growth during the current month over the same month in previous year include ‘gems and jewellery’ (155.6%), ‘single super phosphate (ssp)’ (86.5%), ‘sugar machinery’ (84.3%), ‘h r sheets’ (46.1%), ‘polypropylene (incl. co-polymer)’ (44.8%), ‘cable, rubber insulated’ (37.4%), ‘generator/ alternator’ (36.7%), ‘propylene’ (35.6%), ‘ethylene’ (33.7%), ‘aluminium wires & extrusions’ (25.0%), ‘antibiotics & its preparations’ (23.4%) and ‘cigarettes’ (22.4%).

 Some of the other important items showing high negative growth are: ‘polythene bags including HDPE & LDPE bags’ [(-) 62.9%], ‘woollen carpets’ [(-) 58.5%], ‘instant food mixes (ready to eat)’ [(-) 47.0%], ‘heat exchangers’ [(-) 38.7%], ‘ship building & repairs’ [(-) 29.7%], ‘leather garments’ [(-) 29.3%], ‘furnace oil’ [(-) 26.5%] and ‘tractors (complete)’ [(-) 23.4%].

 However, growth rates in respect of individual items may not reflect their actual contribution in the overall growth rate of IIP, the release said, adding, taking into account the weights of different items, the overall growth rate of IIP can be decomposed into positive and negative contributions of different items.

Meanwhile, the government has released first revision of August 2015 indices and final revision of June 2015 indices.