India logs 3.2 pct IIP growth in May on positive growth in manufacturing
According to the Ministry of Statistics & Programme Implementation, the quick estimates of Index of Industrial Production (IIP) with base 2011-12 for the month of May 2018 stands at 128.8, which is 3.2 percent higher as compared to the level in the month of May 2017. The cumulative growth for the period April-May 2018 over the corresponding period of the previous year stands at 4.0 percent.
India's Industrial production (IIP) grew by 3.2 per cent in May against 2.9 per cent expansion in the same month last year, according to official data. In terms of industries, 13 out of 23 industry groups in the manufacturing sector have shown positive growth during May 2018 as compared to the corresponding month of the previous year, the official data said.
The industrial output as measured by the index of industrial production (IIP) was lower than 4.9 per cent rise in April. Economists polled by Reuters had predicted factory output to grow 5.2 per cent in May.
According to the Ministry of Statistics & Programme Implementation, the quick estimates of Index of Industrial Production (IIP) with base 2011-12 for the month of May 2018 stands at 128.8, which is 3.2 percent higher as compared to the level in the month of May 2017. The cumulative growth for the period April-May 2018 over the corresponding period of the previous year stands at 4.0 percent.
The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of May 2018 stand at 107.5, 129.1 and 164.7 respectively, with the corresponding growth rates of 5.7 percent, 2.8 percent and 4.2 percent as compared to May 2017. The cumulative growth in these three sectors during April-May 2018 over the corresponding period of 2017 has been 4.9 percent, 4.0 percent and 3.1 percent respectively.
In terms of industries, thirteen out of the twenty three industry groups in the manufacturing sector have shown positive growth during the month of May 2018 as compared to the corresponding month of the previous year. The industry group ‘Manufacture of computer, electronic and optical products’ has shown the highest positive growth of 27.0 percent followed by 21.1 percent in ‘Manufacture of motor vehicles, trailers and semi-trailers’ and 13.2 percent in ‘Manufacture of furniture’. On the other hand, the industry group ‘Other manufacturing’ has shown the highest negative growth of (-) 31.9 percent followed by (-) 15.6 percent in ‘Manufacture of tobacco products’ and (-) 12.8 percent in ‘Manufacture of wearing apparel’.
As per Use-based classification, the growth rates in May 2018 over May 2017 are 5.7 percent in Primary goods, 7.6 percent in Capital goods, 0.9 percent in Intermediate goods and 4.9 percent in Infrastructure/ Construction Goods. The Consumer durables and Consumer non-durables have recorded growth of 4.3 percent and (-) 2.6 percent respectively.
Along with the quick estimates of IIP for the month of May 2018, the indices for April 2018 have undergone the first revision and those for February 2018 have undergone the final revision in the light of the updated data received from the source agencies.
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Notably, India's retail inflation for month of June has gone up to 5 per cent compared to 4.87 per cent in May 2018, according to government data released by the Central Statistics Office today. Driven by higher fuel prices and a depreciating rupee, the forecasts for June ranged from 4 per cent to 6 percent. June was the eighth straight month in which inflation was higher than the central bank`s medium-term target of 4 percent, said a Reuters report.
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