India's Industrial Production Declines Slightly, Manufacturing Output Sees Growth

The Index of Industrial Production in the country contracted marginally at 0.1 percent in August, as against July's 4.7 percent when manufacturing production rose by 1 percent, data from the Ministry of Statistics showed on Friday.

In manufacturing, three main positives were basic metals at 3.0 per cent, electrical equipment at 17.7 percent, and chemicals and chemical products at 2.7 percent during August, it has been said by the report.
Minus growth rate of mining. In August this year, there would be a decline in mining growth rate by 4.3 percent because of heavy rainfall, has said the ministry.

The Quick Estimates of IIP stood at 145.6 as against 145.8 in August last year, data said.

Indices of industrial production in the mining, manufacturing and electricity sectors stood at 107.1, 145.9, and 212.3, respectively during August 2014. Indices for primary goods were at 141.6, for capital goods 108.1, intermediate goods 162.2, and for infrastructure/construction goods 180.2 in the month of August 2014. In addition to this, the indices of consumer durables were at 129.6 while consumer non-durables stood at 141.6.

At least, claims credit rating agency ICRA, though not palatable, the marginal contraction of 0.1 per cent dispensed by IIP in August isn't alarming either since it largely reflects the temporary dousing of mining output, electricity demand, and retail footfalls due to the heavier-than-normal rains combined with unfavourable base.

While growth in September 2024 finished steel use lagged August levels, it remained double-digit for the eighth consecutive month.

ICRA's Chief Economist and Head, Research and Outreach, Aditi Nayar said they expect the YoY growth in the IIP to improve to 3-5 per cent in September on account of a likely narrowing in contraction in electricity as well as mining output, a favourable base, and a sharp uptick in the growth in GST e-way bills (to 18.5 per cent in September from 12.9 per cent in August), "which is supported by pre-festive stocking."