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India's industrial growth slips to 17-month low of 0.5% in November

After hitting 11-month high in October, India's industrial growth measured by Index of Industrial Production (IIP) slipped to a 17-month low of 0.5% in November 2018, as compared to 8.5% in November 2017, on account of contraction in manufacturing sector, particularly consumer and capital goods. The previous low was in June 2017, when IIP growth contracted by 0.3%. Besides, the growth for October 2018 was revised upwards to 8.4% from 8.1%. As per the data released by the Central Statistics Office of the Ministry of Statistics and Programme Implementation, IIP with base 2011-12 for the month of November 2018 stood at 126.4, which was 0.5% higher as compared to the level in the month of November 2017. The cumulative growth for the period April-November 2018 over the corresponding period of the previous year stood at 5.0%.

On the sectoral front, the manufacturing sector, which constitutes 77.63% of the index, recorded a contraction of 0.4% in November as against a growth of 10.4% a year ago. However, the mining sector posted 2.7% growth during the month as against 1.4% in November 2017. Power sector output also grew by 5.1% from 3.9% a year ago. The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of November 2018 stand at 110.6, 127.2 and 147.2 respectively. The cumulative growth in these three sectors during April-November 2018 over the corresponding period of 2017 has been 3.7%, 5.0% and 6.6%, respectively.

Besides, the capital goods output contracted to 3.4%, compared to 3.7% growth a year ago. Consumer durables output also dipped 0.9% as against a growth of 3.1% a year earlier. Consumer non-durable goods also saw a contraction of 0.6% as compared to 23.7% growth a year ago. As per Use-based classification, the growth rates in November 2018 over November 2017 were 3.2% in Primary goods, (-) 4.5% in Intermediate goods and 5.0% in Infrastructure/ Construction Goods.

In terms of industries, 10 out of the 23 industry groups in the manufacturing sector have shown positive growth during the month of November 2018 as compared to the corresponding month of the previous year. The industry group 'Manufacture of wearing apparel' has shown the highest positive growth of 22.1% followed by 7.6% in 'Manufacture of wood and products of wood and cork, except furniture; manufacture of articles of straw and plaiting materials' and 7.4% in 'Manufacture of other transport equipment'. On the other hand, the industry group 'Manufacture of fabricated metal products, except machinery and equipment' has shown the highest negative growth of (-) 13.4% followed by (-) 9.6% in 'Manufacture of electrical equipment' and (-) 7.3% in 'Other manufacturing'.

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