Index of Industrial Production

The Quick Estimates of Index of Industrial Production (IIP) with base 2004-05 for the month of August 2016 have been released by the Central Statistics Office of the Ministry of Statistics and Programme Implementation.

IIP is compiled using data received from 15 source agencies viz. (i) Department of Industrial Policy & Promotion (DIPP); (ii) Indian Bureau of Mines; (iii) Central Electricity Authority; (iv) Joint Plant Committee, Ministry of Steel; (v) Ministry of Petroleum & Natural Gas; (vi) Office of Textile Commissioner; (vii) Department of Chemicals & Petrochemicals; (viii) Directorate of Sugar & Vegetable Oils; (ix) Department of Fertilizers; (x) Tea Board; (xi) Office of Jute Commissioner; (xii) Office of Coal Controller; (xiii) Railway Board; (xiv) Office of Salt Commissioner; and (xv) Coffee Board.

The General Index for the month of August 2016 stands at 175.3, which is 0.7 percent lower as compared to the level in the month of August 2015. The cumulative growth for the period April-August 2016 over the corresponding period of the previous year stands at (-) 0.3 percent.

The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of August 2016 stand at 113.5, 184.3 and 194.6 respectively, with the corresponding growth rates of (-) 5.6 percent, (-) 0.3 percent and 0.1 percent as compared to August 2015 (Statement I).

The cumulative growth in these three sectors during April-August 2016 over the corresponding period of 2015 has been 0.6 percent, (-) 1.2 percent and 5.7 percent respectively.

In terms of industries, seven out of the twenty two industry groups (as per 2-digit NIC-2004) in the manufacturing sec tor have shown negative growth during the month of August 2016 as compared to the corresponding month of the previous year (Statement II).

The industry group ‘Electrical machinery & apparatus n.e.c.’ has shown the highest negative growth of (-) 49.4 percent followed by (-) 22.4 percent in ‘Furniture; manufacturing n.e.c.’ and (-) 6.6 percent in ‘Wearing apparel; dressing and dyeing of fur’.

On the other hand, ‘Radio, TV and communication equipment & apparatus’ has shown the highest positive growth of 15.2 percent, followed by 14.6 percent in ‘Other transport equipment’ and 12.4 percent in ‘Basic metals’.

As per Use-based classification, the growth rates in August 2016 over August 2015 are 3.2 percent in Basic goods, (-) 22.2 percent in Capital goods and 3.6 percent in Intermediate goods.

The Consumer durables and Consumer non-durables have recorded growth of 2.3 percent and 0.1 percent respectively, with the overall growth in Consumer goods being 1.1 percent.

Some important items showing high negative growth during the current month over the same month in previous year include ‘Cable, Rubber Insulated’ [(-) 86.2%], ‘Sugar Machinery’ [(-) 65.5%], ‘Woollen Carpets’ [(-) 35.7%], ‘Gems & Jewellery’ [(-) 31.0%], ‘Rice’ [(-) 25.3%] and ‘H R Sheets’ [(-) 24.7%].

Some important items that have registered high positive growth include ‘Fruit Pulp’ (762.0%). ‘Air Conditioner (Room)’ (59.1%), ‘Instant Food Mixes (Ready to eat)’ (46.5%), ‘Ship building and repairs’ (41.1%), ‘H R Coils/ Skelp’ (39.5%), ‘Scooter and Mopeds’ (33.3%), ‘Stainless/ alloy steel’ (31.8%), ‘C R Sheets’ (29.7%), ‘Purified Terephthalic acid’ (29.2%) and ‘Boilers’ (22.8%).

Taking into account the weights, the dominant item groups (five each) which have positively and negatively contributed to the overall growth of IIP are given below:

Along with the Quick Estimates of IIP for the month of August 2016, the indices for July 2016 have undergone the first revision and those for May 2016 have undergone the final revision in the light of the updated data received from the source agencies.

It may be noted that these revised indices (first revision) in respect of July 2016 may undergo final (second) revision along with the release of IIP for the month of October 2016.