India Industrial Production

Mining and electricity generation pushes industrial production growth in January.

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) grew by 2% year-on-year (YoY), in January, the fastest in the last six months. It grew by 0.3% YoY in the pervious month. The growth in factory output was on account of an uptick in mining activity and power generation. The industrial production output has seen a series of ups and downs since December 2018. The electricity generation grew at 3.1% YoY, compared to a -0.1% YoY growth in the pervious month.  

The manufacturing sector which accounts for 77% of the IIP grew at a rate of 1.5% YoY in January 2020  as compared to 1.2% YoY in December 2019. Within manufacturing sector the industry group of manufacture of tobacco products has shown the highest growth of 22.8% YoY followed by manufacture of basic metals and manufacture of furniture. 

Consumer durables and non-durables have recorded a growth of -4% YoY and -0.3% YoY in January 2020. 

The growth in industrial production supported by growth in electricity generation is surely a welcome narrative for the already slowing economy.  But it is still too early to decipher the production performance as of now, given that there can be an impact of overall demand conditions on account of Coronavirus (COVID-19). The RBI might look at the official numbers as a positive sign to cut the interest rates to revive growth in its upcoming policy meet in April, 2020. 

 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: April 12th, 2020