India Industrial Production

Hopes of economic revival takes a pause with a dip in industrial output in December 2019.

Published monthly by Ministry of Statistics and Programme Implementation(MOSPI). Updated till December 2019 (Published on February 12th, 2020).

Note: The MoM% has been calculated over the seasonally-adjusted series.

Recent Data Trend

The index of industrial production (IIP) contracted by 0.3% year-on-year(YoY) in December 2019. The fall comes after registering a revival in growth in November 2019. The industrial production output has seen a series of ups and downs since December 2018, and the current contraction in December 2019 was on account of negative growth seen in manufacturing component (-1.2% YoY) which accounts for 77% of the IIP.

The sustained contraction in production of electricity for the last five months has been weighing on the overall growth of IIP. Although in December 2019, the contraction has narrowed compared to a month ago (5% contraction in November, 2019). Only the mining and quarrying component registered a positive growth (14-month high) of 5.4% YoY in December 2019.

Within used-based classification, four sectors have registered a contraction in growth including production of capital goods, infrastructure goods, consumer durables and consumer non-durables. Intermediate goods and primary goods improved by 12.5% YoY and 2.2% YoY respectively. It can be noted that the growth in intermediate goods has moderated from the growth seen in the previous 2 months. However, the positive growth limit the overall contraction.

On a cumulative basis, IIP grew by 0.5% YoY from April-December 2019 compared to 4.7% YoY in the same period a year ago.

While it is clear that the contraction in production of capital goods and consumer durables segments continues to indicate weak demand conditions and subdued investment climate. The industrial production has to pick up in the coming months in order to sustain the green shoots that was visible till last month. If not, the momentum of economic recovery will take a longer time.

 Brief Overview

Index of Industrial production is published by the Ministry of Statistics and Programme Implementation every month. The current base year of the index is 2011-12=100. The index shows the changes in the production volume of different industrial commodities. The sub-components of IIP are- Mining, Manufacturing, and Electricity. The IIP is also classified according to its use namely, Primary Goods, Capital Goods, and Intermediate Goods. It is an essential measure of growth as it records the level of industrial activity in the economy.

For more information visit the official government website

IIP- Use based classification

Industrial Production-Quarterly

Note: The QoQ% has been calculated over the seasonally-adjusted series.

Industrial Production-Annual

Next release date: March 12th, 2020