IIP falls 0.1% in June 2017
Index for Industrial Production (IIP) for the month of June 2017 fell 0.1% as against the same month of last year.
Ministry of Statistics & Programme Implementation, in a statement on Friday, said, "The General Index for the month of June 2017 stands at 119.6, which is 0.1% lower as compared to the level in the month of June 2016. The cumulative growth for the period April-June 2017 over the corresponding period of the previous year stands at 2.0%."
Analysts at Motilal Oswal said, “We expect IIP growth to come in at 1.9% in June, only a tad higher than the May reading. For the full-year FY18, we expect IIP to rise by 3.3%, lower than +4.9% in FY17.”
Data revealed that fifteen out of the twenty three industry groups in the manufacturing sector registered negative growth during the month of June 2017 as compared to the corresponding month of the previous year. The ministry said, "The industry group ‘Manufacture of electrical equipment’ has shown the highest negative growth of (-) 20.1% followed by (-) 11.1% in ‘Manufacture of fabricated metal products, except machinery and equipment’ and (-) 10.5% in ‘Printing and reproduction of recorded media’."
It further said, "The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of June 2017 stand at 98.8, 120.6 and 147.4 respectively, with the corresponding growth rates of 0.4%, (-)0.4% and 2.1% as compared to June 2016."
The ministry said, "Some important items that have registered high negative growth include ‘Water purification apparatus’ [(-) 68.4%], ‘Shelled cashew kernel, whether or not processed/ roasted/ salted’ [(-) 63.6%], ‘Electrical apparatus for switching or protecting electrical circuits (e.g switchgear, circuit breakers/switches, control/ meter panel)’ [(-) 48.6%], ‘Plastic jars, bottles and containers’ [(-) 48.1%], ‘Kerosene’ [(-) 39.0%], ‘Printing machinery’ [(-) 35.6%], ‘Tooth Paste’ [(-) 33.0%], ‘Air filters’ [(-) 28.9%], ‘Vaccine for veterinary medicine’ [(-) 28.8%] and ‘Cement Clinkers’ [(-) 22.2%]."
Madan Sabnavis and Rucha Ranadive, economists at Care Ratings, in an earlier report said, "The growth in the industrial output in recent months is majorly realised due to push up in the government spending and core sector. With speculation of increase in prices post the implementation of Goods and Services Tax (GST) major offloading of inventories took place in the month of June’17."