Industrial activity picked pace in May after showing positive signs with 3.4 per cent growth in April, the fastest pace in more than a year. This was led by growth in electricity generation and growth in consumer goods production.
The indices of industrial production for the mining, manufacturing and electricity sectors grew 2.7 per cent, 4.8 per cent and 6.3 per cent, respectively, in May.
The cumulative growth in the three sectors during April-March 2013-14 over the corresponding period of 2012-13 has been (-) 0.6 per cent, (-) 0.8 per cent and 6.1 per cent, respectively. The overall index of industrial production (IIP) had declined 0.1 per cent during April-March 2013-14 over FY13.
The second month of the new fiscal shows some momentum building up in economic revival. In terms of industries, 16 of the 22 industry groups in the manufacturing sector have shown positive growth during May 2014 compared with the corresponding month of the previous year. In April, 14 of these sectors had grown, which shows the growth has spread out.
The industry group furniture manufacturing grew the fastest (60 per cent), followed by tobacco products and electrical machinery & apparatus. On the other hand, the industry group radio, TV and communication equipment & apparatus recorded the highest negative growth of (-) 40.3 per cent followed by decline in office, accounting & computing machinery and motor vehicles, trailers & semi-trailers.
As per use-based classification, the growth was fastest for basic goods (6.3 per cent) followed by capital goods (4.5 per cent) and intermediate goods (2.7). The growth in capital goods was tempered compared with the double-digit rise in April.
The consumer goods basket showed a rebound with 3.7 per cent growth with similar growth in consumer durables and non durables. The consumer goods basket was in the negative zone, declining 5.1 per cent in April.
(Edited by Joby Puthuparampil Johnson)