October industrial output contracts 3.8%

New Delhi: Index of Industrial Production (IIP) or factory output for the month of October has contracted by 3.4 percent as compared to a growth of 8.4 percent in the same month last year, according to the Index of Industrial Production (IIP) data released by the Central Statistics Office.

The quick estimates of Index of Industrial Production (IIP) with base 2011-12 for the month of October 2019 stand at 3.8 percent lower as compared to the level in the month of October 2018. The cumulative growth for the period April-October 2019 over the corresponding period of the previous year stands at 0.5 percent, said the statement.

According to the official statement, other key observations are:

The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of October 2019 stand at 99.5, 131.1 and 145.8 respectively, with the corresponding growth rates of (-) 8.0 percent, (-) 2.1 percent and (-) 12.2 percent as compared to October 2018. 

The cumulative growth in these three sectors during April-October 2019 over the corresponding period of 2018 has been (-) 0.4 percent, 0.5 percent and 1.6 percent respectively.

In terms of industries, 18 out of the 23 industry groups in the manufacturing sector have shown negative growth during the month of October 2019, as compared to the corresponding month of the previous year. 

The industry group ‘Manufacture of computer, electronic and optical products’ has shown the highest negative growth of (-) 31.3 percent followed by (-) 27.9 percent in ‘Manufacture of motor vehicles, trailers, and semi-trailers’. 

The industry group ‘Manufacture of chemicals and chemical products’ has shown the highest positive growth of 31.8 percent followed by 9.4 percent in ‘Manufacture of basic metals’.

As per use-based classification, the growth rates in October 2019 over October 2018 are (-) 6.0 percent in Primary goods, (-) 21.9 percent in Capital goods, 22.2 percent in Intermediate goods and (-) 9.2 percent in Infrastructure/ Construction Goods (Statement III). The Consumer durables and Consumer non-durables have recorded growth of (-) 18.0 percent and (-) 1.1 percent respectively.

Along with the Quick Estimates of IIP for the month of October 2019, the indices for September 2019 have undergone the first revision and those for July 2019 have undergone the final revision in the light of the updated data received from the source agencies.

Notably, Reserve Bank of India (RBI) in its fifth bi-monthly policy has revised GDP growth downwards to 5 percent from 6.1 percent earlier. The Index for November 2019 will be released on January 10, 2020.