Industrial Production India

Industrial production witnessed a broad-based slowdown to 3.1% YoY in May 2019.

Published monthly by Ministry of Statistics and Programme Implementation(MOSPI). Updated until the month of May 2019. (Published on July 12th, 2019).

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

Recent Data Trend

India's industrial production slipped to 3.1% YoY in May 2019 after bouncing back to a 6-month high of 4.3% YoY in April 2019, indicating that the rebound was only transitory. The slowdown in the index of industrial production growth is across the board and in line with the market expectation. Manufacturing, mining, capital, and consumer durables goods, witnessed a downswing in their growth rates in May 2019 as compared to the previous month. The downturn was on account of lower private investment due to uncertainty over elections in May 2019 along with a subdued consumption demand.

The manufacturing activity declined to 2.5% YoY in May as against 4% YoY growth in April. Within manufacturing 9 out of 23 industries recorded negative growth as against only 5 industries in the last month. The mining sector also witnessed a slump in its growth rate to 3.2 % YoY in May from 5.1% YoY in April.

As per the use-based classification, besides consumer non-durables, all other categories registered a tepid growth in May. The growth in capital and consumer durables goods declined to (-)0.1% YoY and 0.8% YoY, after witnessing an upward trend in April, respectively.

A broad-based slowdown in the growth of industrial production, despite the lower base effect, is clearly a matter of concern for the economy. We believe, a slowing economy globally and a subdued demand domestically along with a diminishing statistical advantage of a lower base for IIP, growth in Index of Industrial production can remain subdued in coming months.

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: August 12th, 2019

Industrial Production-Quarterly

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

Industrial Production-Annual