March IIP grows at 2.5%
11052013
March IIP grows at 2.5%
The recovery in IIP growth is inspiring on good growth performance in capital goods segment supported by growth in basic goods production. However, its sustainability would require all-round efforts in removing impediments for business activity. There are a host of reforms, which if implemented could make the industry environment conducive for investments and help attain higher growth.
Growth in industry output, as measured in terms of IIP, for the month of March 2013 is estimated at 2.5% as compared with (-) 2.8% during March 2012. The cumulative growth for the period April-March 2012-13 stands at 1% as compared to 2.9% in the corresponding period of the previous year.
The growth in the three sectors mining, manufacturing and electricity in March 2013, stands at (-) 2.9%, 3.2% and 3.5% respectively as compared to (-) 1.1%, (-) 3.6% and 2.7% during March 2012 respectively. The cumulative growth for the period April- March 2012- 2013 in the three sectors mining, manufacturing and electricity over the corresponding year stands at (-) 2.5%, 1.2% and 4% respectively.
Recent growth pattern in IIP (% growth)
| Industry Group |
Weight in IIP
|
Apr- Mar
|
Apr-Mar
|
March
|
March
|
2011-12
|
2012-13
|
2012
|
2013
| ||
| Mining |
14.2
|
-1.9
|
-2.5
|
-1.1
|
-2.9
|
| Manufacturing |
75.5
|
3.0
|
1.2
|
-3.6
|
3.2
|
| Electricity |
10.3
|
8.2
|
4.0
|
2.7
|
3.5
|
| Use based classification | |||||
| Basic goods |
45.7
|
5.5
|
2.3
|
1.1
|
2.6
|
| Capital goods |
8.8
|
-4.0
|
-6.3
|
-20.1
|
6.9
|
| Intermediate goods |
15.7
|
-0.6
|
1.2
|
0.0
|
-0.2
|
| Consumer Goods | |||||
| Consumer goods |
29.8
|
4.4
|
2.4
|
1.1
|
1.6
|
| a) Consumer durables |
8.5
|
2.6
|
2.1
|
1.2
|
-4.5
|
| b) Consumer non-durables |
21.3
|
5.9
|
2.7
|
1.0
|
6.5
|
| Overall IIP |
100
|
2.9
|
1.0
|
-2.8
|
2.5
|
Source: PHD Research Bureau, compiled from CSO
Basic goods have grown at 2.6% during March 2013 as compared to 1.1% during March 2012. The cumulative growth during April – March 2012-13 stands at 2.3% as compared to 5.5% during the corresponding period of last year. Consumer goods have grown at 1.6% during March 2013 as compared to 1.1% during March 2012. Consumer durables have grown at (-)4.5% during March 2013 as compared to 1.2% during corresponding period last year, while consumer non durables have grown at 6.5% during March 2013 as compared to 1% during March 2012.
The cumulative growth of consumer goods during Apr-March 2012-13 stands at 2.4% as against 4.4% during the corresponding period last year. Consumer durables have shown a cumulative growth of 2.1% during Apr-March 2012-13 as against 2.6% during Apr-March 2011-12, while consumer non durables have shown a cumulative growth of 2.7% during Apr-March 2012-13 as compared to 5.9% during Apr-March 2011-12.
Some of the important items showing high positive growth during the current month over the same month in previous year includes Cigarettes (28.4%), Woollen Carpets (83.1%), Apparels (175.0%), Leather Garments (49.9%), Fuel, Aviation Turbine (33.1%), Propylene (29.6%), Ethylene (40.3%), Air Conditioner (Room) (37.9%), Conductor, Aluminium (45.0%) and Cable, Rubber Insulated (247.3%).
Some of the other important items showing high negative growth are Synthetic Yarn (-) 24.8%, Terry Towel (-) 22.9%, Razor Blades/ Safety Blades (-) 29.4%, Fasteners (-) 27.2%, Heat Exchangers (-) 27.2%, Sugar Machinery (-) 64.6%, Plastic Machinery Incl. Moulding Machinery (-) 22.5% and Ship Building & Repairs (-) 30.3%.
Trend in IIP growth (%)
Source: PHD Research Bureau, compiled from CSO
Capital goods have grown at 6.9% during March 2013 as compared to a growth of (-) 20.1% in March 2012. The cumulative growth of capital goods stands at (-) 6.3% during April- March 2012-13 as compared to (-) 4% during April- March 2011-12.
Trend in the growth of capital goods (%)
Source: PHD Research Bureau, compiled from CSO
Warm regards,
Dr. S P Sharma
Chief Economist
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