Industrial Production India

Manufacturing slows down industrial production growth in March 2019.

Published monthly by Ministry of Statistics and Programme Implementation(MOSPI). Updated until the month of March 2019. (Published on May 10th, 2019).

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

Recent Data Trend

The industrial production growth slowed down to a 21-month low of -0.1% year-on-year (YoY) in March 2019, much lower than the 5.3% YoY growth witnessed in the corresponding period last year. The production growth was markedly below the market expectations thus leading to an increase in the concern over a slowdown in economic activities in the country. The slowdown was driven by subdued activity in the manufacturing sector at -0.4% YoY. It is the second consecutive month that we see a contraction in manufacturing thus reflecting lower economic activity in the country. The mining sector grew at 0.8% YoY, compared to 3% YoY growth in the year-ago period.

As per use-based classification, the capital and intermediate goods posted a poor show, indicative of subdued investment activity. Their production contracted by -8.7% YoY and -2.5% YoY respectively in March 2019. Uncertainty over general elections may be one of the main reasons behind lower activity in these sectors. We see that even within consumer durables production there was a slowdown in March 2019 (15.1% YoY) which reflects weakening demand conditions in the country.

Gauging the cumulative performance of industrial production, during Apr-Mar'19, the industrial production grew by 3.6% over the corresponding period a year ago. IIP growth stood at 4.4% in the comparable period last year. This is the lowest annual growth since 2015-16. 

It seems likely that in the coming few months, industrial output growth may continue to see lower investment activity amid uncertainties due to the general elections.

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

Next release date: June 12th, 2019

Industrial Production-Quarterly

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

Industrial Production-Annual