Quick Estimates of IIP and Use-Based Index for October 2015 released

Quick Estimates of Index of Industrial Production (IIP) and Use-Based Index with the base year 2004-05 for the month of October 2015 were released on 11 December 2015. It was released by Central Statistics Office (CSO) of the Union Ministry of Statistics and Programme Implementation.

Main highlights of Index of Industrial Production (IIP)

• IIP for October 2015 stood at 181.3, which is 9.8% higher as compared to the level in October 2014. In September 2015 (month-on-month), IIP growth rate stood at 3.6 percent.
• The cumulative growth for the period April-October 2015-16 over the corresponding period of the 2014-15 stood at 4.8%.
• The IIP for the Mining, Manufacturing and Electricity sectors for October 2015 stood at 130.0, 188.1 and 201.6 respectively, with the corresponding growth rates of 4.7%, 10.6% and 9.0% as compared to October 2014.
• The cumulative growth in the three sectors during April-October 2015-16 over the corresponding period of 2014-15 was 2.0%, 5.1% and 5.2% respectively.
• In terms of industries, seventeen (17) out of the twenty two (22) industry groups (as per 2-digit NIC-2004) in the manufacturing sector have shown positive growth during the month of October 2015 as compared to the October 2014.
• The industry group ‘Furniture; manufacturing’ recorded the highest positive growth of 138.9%, followed by 48.4% in ‘Office, accounting & computing machinery’ and 47.5% in ‘Radio, TV and communication equipment & apparatus’.
• The industry group ‘Publishing, printing & reproduction of recorded media’ recorded the highest negative growth of (-) 10.2%, followed by (-) 6.8% in ‘Medical, precision & optical instruments, watches and clocks’ and (-) 2.9% in ‘Coke, refined petroleum products & nuclear fuel’.

Main Highlights of Used-Based Index

• The growth rates in October 2015 over October 2014 was 4.1% in Basic goods, 16.1% in Capital goods and 6.7% in Intermediate goods
• The Consumer durables and Consumer non-durables recorded growth of 42.2% and 4.7% respectively, with the overall growth in Consumer goods being 18.4%.
• Three important items showing highest positive growth in October 2015 over October 2015 are: ‘Gems and Jewellery’ (372.5%), ‘Sugar Machinery’ (103.4%) and ‘Telephone Instruments including Mobile Phone and Accessories’ (61.5%)
• Three important items showing highest negative growth in October 2015 over October 2015 are: ‘Polythene Bags including HDPE & LDPE Bags’ (-) 61.8%, ‘Ship Building & Repairs’ (-) 46.5% and ‘Grinding Wheels’ (-) 36.3%.

Comment

The higher growth rates in IIP came on expected lines due to pre-festive ramp-up and growth in mining, electricity as well as the favourable base. But the biggest industrial item which pulled the Industrial growth to 5-year high was consumer durables, which grew at 42.2%.

The moderate 4.8% industrial growth in April-October 2015 lends support to the view that a narrow economic recovery is underway.

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