Indian industrial production growth rate touches 2.4 percent in December
New Delhi, Feb 12 (IBNS): India's factory output touched down to a figure of 2.4 per cent in December 2018,official data released on Tuesday said.
The figures stood at 7.3 percent in the corresponding period in 2017.
"The Quick Estimates of Index of Industrial Production (IIP) with base 2011-12 for the month of December 2018 stands at 133.7, which is 2.4 percent higher as compared to the level in the month of December 2017. The cumulative growth for the period April-December 2018 over the corresponding period of the previous year stands at 4.6 percent," read a government statement.
The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of December 2018 stand at 114.4, 135.5 and 150.3 respectively, with the corresponding growth rates of (-) 1.0 percent, 2.7 percent and 4.4 percent as compared to December 2017 .
The cumulative growth in these three sectors during April-December 2018 over the corresponding period of 2017 has been 3.1 percent, 4.7 percent and 6.4 percent respectively.
In terms of industries, thirteen out of the twenty three industry groups (as per 2-digit NIC-2008) in the manufacturing sector have shown positive growth during the month of December 2018 as compared to the corresponding month of the previous year.
The industry group ‘Manufacture of tobacco products’ has shown the highest positive growth of 27.9 percent followed by 17.9 percent in ‘Manufacture of other transport equipment’ and 16.5 percent in ‘Manufacture of wearing apparel’. On the other hand, the industry group ‘Manufacture of furniture’ has shown the highest negative growth of (-) 18.7 percent followed by (-) 16.4 percent in ‘Other manufacturing’ and (-) 5.4 in ‘Manufacture of coke and refined petroleum products’.
As per Use-based classification, the growth rates in December 2018 over December 2017 are (-) 1.2 percent in Primary goods, 5.9 percent in Capital goods, (-) 1.5 percent in Intermediate goods and 10.1 percent in Infrastructure/ Construction Goods.
B Prasanna, Head, Global Markets Group, ICICI Bank, “India’s industrial production data for December was in line with expectations and confirms our belief that the November print was more an aberration. The recovery in growth in consumer goods, especially non-durables, is encouraging. This is because it indicates that non-discretionary consumption is still steady even as high frequency indicators show a slowdown in discretionary consumption items. The pickup in construction and manufacturing are welcome as well."
"On the inflation front, the CPI number surprised positively and core inflation also moved lower. However, the conundrum of sharp spikes in rural health and education prices still remains and requires watching. RBI has recently revised the trajectory of CPI sharply lower and delivered a cut in policy rate. Our expectations for the next few months are also very benign on headline CPI and hence we believe that there is room for further accommodation in the next policy meeting,” he said.
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