India's November 2016 IIP rises 5.7% against estimates of 1.5%

Index of Industrial Production (IIP), or factory output for the month of November 2016 rose 5.7% against analyst estimates of 1.5%. IIP for the month of October stood 178, a drop of 1.8% as compared to October, 2015. 

Data show that mining output in the month of November 2016 rose 3.9% as against the same month of last year. Electricity, manufacturing, capital goods and consumer goods production rose 8.9%, 5.5%, 15% and 5.6%, respectively.

Ministry of Statistics & Programme Implementation said, "The General Index for the month of November 2016 stands at 175.8, which is 5.7 percent higher as compared to the level in the month of November 2015. The cumulative growth for the period April-November 2016 over the corresponding period of the previous year stands at 0.4 percent."

source: tradingeconomics.com

According to chief India economist Pranjul Bhandari, of HSBC, she estimated that despite expected sequential decline, in annual terms, IIP may register a positive 0.5% year-on-year growth due to favourable base effects. 

The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of November 2016 stand at 135.9, 181.2 and 191.2 respectively, with the corresponding growth rates of 3.9 percent, 5.5 percent and 8.9 percent as compared to November 2015 (Statement I). The cumulative growth in these three sectors during April-November 2016 over the corresponding period of 2015 has been 0.3 percent, (-) 0.3 percent and 5.0 percent respectively.

As per Use-based classification, the growth rates in November 2016 over November 2015 are 4.7 percent in Basic goods, 15.0 percent in Capital goods and 2.7 percent in Intermediate goods (Statement III).  The Consumer durables and Consumer non-durables have recorded growth of 9.8 percent and 2.9 percent respectively, with the overall growth in Consumer goods being 5.6 percent, the ministry said. 

Some important items showing high positive growth during the current month over the same month in previous year include ‘Cable, Rubber Insulated’ (185.0%), ‘Tractors (complete)’ (95.0%), ‘Telephone instruments including mobile phone and accessories’ (42.8%), ‘Passenger cars’ (29.5%), ‘Aviation Turbine Fuel’ (28.3%), ‘Plastic Machinery including Moulding Machinery’ (24.1%) and ‘Sugar’ (21.2%), it said.