Industrial Production Growth Slows To 3.1 Percent In April

New base year effect IIP rises by 3.1% in April

New base year effect IIP rises by 3.1% in April Representational Image

The manufactured product sector output improved 4.9%, while the mining and electricity generation improved 5.3% and 5.8% in April-March FY2017.

The factory output had expanded by 1.9 per cent during February 2017. Power generation rose by 5.4% in April, down from 14.4% expansion in April past year.

As per use-based classification, the growth rates in April 2017 over April 2016 are 3.4 per cent in primary goods, 4.6 per cent in intermediate goods and 5.8 per cent in infrastructure/ construction goods.

Consumer durables saw a negative growth at (-) 6.0 percent in April, compared with 13.8 percent growth during the same period past year.

The Index of Industrial Production (IIP) rose to 3.1 per cent in April led by high growth in manufacturing. Retail inflation dropped to an all time low of 2.18 per cent in May.

The overall IIP for April 2017 stood at 117.9, an increase of 3.1 percent compared to April 2016.

In terms of industries, fourteen out of the 23 industry groups in the manufacturing sector have shown positive growth in April 2017 as compared to the corresponding month of the previous year.

The industry group "Manufacture of pharmaceuticals, medicinal chemical and botanical products" has shown the highest positive growth of 29.1 percent followed by 17.9 percent in "Manufacture of tobacco products" and 9.5 percent in "Manufacture of machinery and equipment n.e.c.'". For April 2017, the IIP weightage for "Manufacture of motor vehicles, trailers and semi-trailers" is 95.5 which is a 15.56 percent decrease compared to 113.1 for April 2016.

The consumer food price index (CFPI) moved into deflation as prices in May fell by (-) 1.05 per cent, as compared with a rise of 7.45 per cent in the corresponding month of 2016, pulled down by lower prices of pulses, cereals and perishable goods.

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