In a positive surprise, industrial production bounced back into expansion in January, mainly due to good performance of mining and manufacturing sectors, coupled with sharp increase in output of capital goods segment. As per the data released by the Central Statistics Office of the Ministry of Statistics and Programme Implementation, Index of Industrial Production (IIP) with base 2004-05 for the month of January 2017, stood at 191.3, which is 2.7 percent higher as compared to the level in the month of January 2016 and (-) 0.4 percent in December 2016. The cumulative growth for the period April-January 2016-17 over the corresponding period of the previous year stood at 0.6 percent.
On the sectoral basis, the Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of January 2017 stood at 146.1, 199.2 and 195.6 respectively, with the corresponding growth rates of 5.3 percent, 2.3 percent and 3.9 percent as compared to January 2016. The cumulative growth in these three sectors during April-January 2016-17 over the corresponding period of 2015-16 has been 1.4 percent, (-) 0.2 percent and 5.0 percent respectively.
In terms of industries, 9 out of the 22 industry groups in the manufacturing sector have shown positive growth during the month of January 2017, as compared to the corresponding month of the previous year. The industry group ‘Electrical machinery & apparatus n.e.c.’ has shown the highest positive growth of 42.4 percent followed by 21.8 percent in ‘Radio, TV and communication equipment & apparatus’ and 12.4 percent in ‘Basic metals’. On the other hand, the industry group ‘Office, accounting and computing machinery’ has shown the highest negative growth of (-) 16.0 percent followed by (-) 14.8 percent in ‘Food products and beverages’ and (-) 13.4 percent in ‘Other transport equipment’.
As per Use-based classification, the capital goods segment grew by 10.7 per cent in January against a contraction of 21.6 per cent in the same month of last financial year. The basic goods category expanded by 5.3 percent against 1.9 percent growth in January 2016. On the other hand, the intermediate goods category contracted by 2.3 percent. The consumers goods segment contracted by 1 percent in January. It comes over a 0.1 percent decline in January 2016, despite quickening of remonetisation process. In the consumer goods segment, durable items expanded by 2.9 percent, but non-durable contracted by 3.2 percent. IIP as a whole had contracted by 1.6 percent in January 2016.