The Index of Industrial Production (IIP) for the month of April came in at a disappointing (-)0.8%. This implies that industrial production has contracted 0.80 per cent in April as against a growth of 3 per cent a year ago.
This is the first IIP contraction in three months. The IIP had registered a growth of about 2 per cent in February this year. The provisional estimates of 0.1 per cent growth in March this year was revised slightly upwards to 0.3 per cent. The IIP declined by 1.6 per cent this January.
The General Index for the month of April 2016 stands at 176.4. The cumulative growth for the period April-March 2015-16 over the corresponding period of the previous year stands at 2.4 per cent.
In terms of industries, nine out of the twenty two industry groups in the manufacturing sector have shown negative growth during the month of April 2016.
Manufacturing sector which constitutes over 75 per cent of the index, contracted by 3.1 per cent in April this year compared to a growth of 3.9 per cent in same month last year.
The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors stand at 123.6, 182.6 and 203.0 respectively, with the corresponding growth rates of 1.4 percent, (-) 3.1 percent and 14.6 percent as compared to April 2015. The manufacturing sector output is the lowest since December 2015.
Similarly the capital goods output, which is a barometer of investment, declined sharply by 24.9 per cent in April compared to a growth of 5.5 per cent during the same month last year.
Showing lower demand, overall consumer goods output dipped by 1.2 per cent in month under review as against a growth of 2.8 per cent year ago.
The consumer non-durable segment showed decline in output by 9.7 per cent compared to a growth of 3.7 per cent year ago.
However, the consumer durable sector showed an uptrend by recording a growth of 11.8 per cent, up from 1.3 per cent a year ago.
On the positive side, power generation recorded a growth of 14.6 per cent as against a marginally decline of 0.5 per cent a year ago.
Government had said last week it will come out with revised IIP and WPI indices by the end of this year with a new base year of 2011-12 in order to make them more representative of the changing economic scenario.
“IIP is due for revision. It is at a very advanced stage. WPI is also up for revision. Similar to IIP, it is also at the very advanced stage. Both will be revised, as per my expectations, within the current year,” Chief Statistician TCA Anant had said.
BSE Sensex and NSE Nifty ended lower on account of selling in frontline blue chip counters taking cues from global counterparts. Investors also maintained cautious stance ahead of industrial production data.
Sensex closed 127.71 points down at 26635.75, while Nifty 50 index closed 33.55 points down at 8170.05.
Meanwhile, manufacturers increased activity for a fifth consecutive month in May but the pace of expansion was weak as output growth softened for the second month in a row, a business survey showed on Wednesday.
The Nikkei Manufacturing Purchasing Managers’ Index, compiled by Markit, rose to 50.7 in May from 50.5 in April. A reading above 50 indicates expansion.
(With inputs from PTI)