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Industrial production of India grows 6.6% in July

With good performance by the manufacturing sector and higher offtake of capital goods and consumer durables, India's industrial production measured by Index of Industrial Production (IIP) grew at 6.6% in the month of July 2018. Factory output had expanded by just 1% in July last year. Though, it was slightly lower than 7% growth in June 2018. Besides, The IIP growth for June revised downwards to 6.8% from the provisional estimate of 7% released last month.

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 July 2018, stood at 125.8, which was  6.6% higher as compared to the level in the month of July 2017. The cumulative growth for the period April-July 2018 over the corresponding period of the previous year stands at 5.4%.

On the sectoral basis, the manufacturing sector, which constitutes around 77.63% of the Index, recorded a 7% growth in July as against a contraction of 0.1% in the same month year ago. Growth in electricity generation was at 6.6%, slightly higher than 6.6% in July 2017. On the other hand, growth in mining output halved to 3.7% in July, down from 4.5 in the same month of previous year. The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of July 2018 stand at 95.8, 127.6 and 162.1 respectively. The cumulative growth in these three sectors during April-July 2018 over the corresponding period of 2017 has been 5.0%, 5.6% and 5.3% respectively.

The consumer durables sector recorded an impressive growth of 14.4% in July against a dip of 2.4% year ago. Capital goods production grew by 3% in July as against decline of 1.1% year ago. As per Use-based classification, the growth rates in July 2018 over July 2017 were 6.9% in Primary goods, 1.2% in Intermediate goods and 8.4% in Infrastructure/ Construction Goods. The Consumer non-durables have recorded growth of 5.6%.

In terms of industries, 20 out of the 23 industry groups in the manufacturing sector have shown positive growth during the month of July 2018 as compared to the corresponding month of the previous year. The industry group 'Manufacture of furniture' has shown the highest positive growth of 42.7% followed by 30.8% in 'Manufacture of computer, electronic and optical products' and 28.4% in 'Manufacture of tobacco products'. On the other hand, the industry group 'Manufacture of paper and paper products' and 'Printing and reproduction of recorded media' have shown the highest negative growth of (-) 2.7% followed by (-) 0.9% in 'Manufacture of machinery and equipment n.e.c.'.

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