IIP Report

IIP Report

IIP

IIP

SAIL, Sadbhav Engineering, Prakash Industries, Pratibha Industries, PTC India, Hindalco, IIP, Ambuja Cements, Tata Steel

SAIL, Sadbhav Engineering, Prakash Industries, Pratibha Industries, PTC India, Hindalco, IIP, Ambuja Cements, Tata Steel

IIP Report

IIP Report

India IIP

India IIP

India's industrial output moderates in April

India's industrial output, as measured by the all-India Index of Industrial Production (IIP) stood grew by 6.3% in April 2011 as per the new series, the Central Statistics Office (CSO) said on Friday. This is lower as compared to the 8.8% expansion in March as per the new series. Industrial output grew by a modest 4.4% in April this year versus 7.3% in March 2011 as per the old series, the CSO said.

The annual growth rate in IIP for the period April-March 2010-11 stood at 8.2% over the corresponding period of the previous year as per the new series. Industrial production rose by just 5.3% in the previous financial year (2009-10).

Industrial output growth slumps in November

India's industrial output growth eased sharply in November compared to the previous month, as a high base of last year and a series of interest rate increases adversely affected the performance of Manufacturing, Mining and Electricity. The industrial output, as measured by the index of industrial production (IIP), stood at 2.7% in November versus an upwardly revised 11.3% in October, the Union Commerce & Industry Ministry said. October's IIP reading was revised up from a provisional estimate of 10.8%. The November's IIP reading surpassed consensus expectations of a 6-6.5% growth. India's industrial production had expanded by 11.3% in November 2009. Year-to-date (April-November 2010-11), India's industrial production stood at 9.5% versus 7.4% in the corresponding period of the previous financial year.

IIP Report

IIP Report

Industrial output slows further in September

India's industrial output slowed further in September from the previous month to touch a 16-month low, sending stocks and the rupee down while bonds rose. The data is bound to put the policymakers and the central bank in a fix as they grapple with erratic statistics on the one hand and high inflation on the other. Industrial output, as measured by the index of industrial production (IIP), grew by a paltry 4.4% in September 2010 versus 8.2% in the same month last year, the Commerce & Industry Ministry said. IIP for September 2010 had been forecast to grow by 6-7% on average.

India IIP Numbers - Oct 13 2010

India IIP Numbers - Oct 13 2010

Hindustan Unilever, Coal India, Larsen Tourbo, Tata Steel, Sun Pharma, IIP

Hindustan Unilever, Coal India, Larsen Tourbo, Tata Steel, Sun Pharma, IIP

Industrial output unexpectedly falls in May

India's industrial output surprisingly declined in May when compared to growth in April, as the Mining and Manufacturing sub-segments saw a sharp deceleration in their respective outputs even as the Electricity sub-segment witnessed a steady expansion over the previous month. The industrial output, as measured by the index of industrial production (IIP), stood at a surprisingly low 11.5% in May as against consensus estimates of 15-16%. Also, the Central Statistical Organisation (CSO) today revised down April's IIP growth reading from 17.6% to 16.5%.

India IIP Numbers - July 13 2010

India IIP Numbers - July 13 2010

India IIP Numbers

India IIP Numbers

Industrial output exceeds expectations

India's industrial production expanded in April at a much faster pace than anticipated, putting additional pressure on the Reserve Bank of India (RBI) to undertake more monetary tightening at its policy review next month. Growth was once again led by a strong performance by the crucial manufacturing segment, even as electricity turned out to be a laggard. Industrial output, as measured by the index of industrial production (IIP), stood at 17.6% in April as against an upwardly revised growth rate of 13.9% in March, data released by the Central Statistical Organisation (CSO) showed. The IIP reading beat consensus estimates of 13.5-14.5%. IIP growth stood at a mere 1.1% in April last year, as India's factories, mines and power utilities remained under pressure amid a sluggish global economy.

Base effect bolsters industrial output again

India's industrial production expanded at a strong pace in January 2010, thanks largely to a low base effect, data released by the government showed. However, growth in industrial output slowed slightly from the previous month, stoking some worries about future prospects, especially once the fiscal stimulus is withdrawn and interest rates starts to rise. It may be recalled that in January 2009 industrial activity was still reeling under the aftereffects of the global financial crisis.

India's industrial output, as measured by the Index of Industrial Production (IIP), stood at 16.7% in January 2010 as against 1% in the same month a year earlier, the Commerce & Industry Ministry said. The figure was mostly in line with consensus estimates. It remained near the highest reading since April 1995, when the series, which uses 1993-94 as base year, started. Industrial production growth for December was revised up, to 17.6% from a preliminary estimate of 16.8%.

Manufacturing, with an almost 80% weightage in the IIP, stood at 17.9% in January 2010 compared to a 1% in the same month in 2009. The Electricity sub-segment grew by 5.6% in the month under review versus 1.8% in January 2009. Mining output grew by 14.6% in the first month of 2010 as against 0.7% growth achieved in January 2009.

Consumer Durables output expanded by 31.6% in January 2010 compared to 2% in the same month of 2009. Production of Consumer Non-durables shrank by 3.1% as opposed to a growth of 4% in January 2009. Consumer Goods recorded a growth of 4.2% versus 3.6% in January 2009.

Output in the Capital Goods space grew by a whopping 56.2% in January 2010 compared to 15.9% for the same month of 2009. The growth rate in Basic Goods category stood at 10.7% as against a contraction of 0.7% in the year-ago period. Output in Intermediate Goods segments rose by 21.3% in the month under review versus a drop of 7.2% in January 2009.

Between April and January, industrial growth expanded 9.6% compared to 3.3% in the same period last year, the Commerce Ministry said.

Industrial output growth beats expectations

India's industrial production grew at its fastest pace in 15 years in December, surpassing all optimistic forecasts, lending credence to a growing view that the economy is out of the woods and ready for an 'exit' from the crisis-fighting stimulus measures. Industrial output, as measured by the Index of Industrial Production (IIP), expanded by a robust 16.8% in December from the same month a year earlier, data released by the Commerce & Industry Ministry showed. The figure was well above consensus estimates of 12-13%.

India's industrial output had contracted by 0.2% in December 2008, as credit markets seized up in the wake of the global financial turmoil and industrial demand sank amid weak external environment. It was the highest reading since April 1995, when the series, which uses 1993-94 as base year, started. On a month-ago basis (with no seasonal adjustments), however, the December 2009 performance showed an industrial growth rate of 10.81%, the highest since the industrial slowdown began in the third quarter of 2008.

Manufacturing, with an almost 80% weightage in the IIP, grew by 18.5% in December 2009 compared to a 0.6% decline in the same month in 2008. The Electricity sub-segment grew by 5.4% in the month under review versus 1.6% in December 2008. Mining output grew by 9.5% in the last month of 2009 as against 2.2% growth achieved in December 2008.

Consumer Durables expanded by a whopping 46% in December 2009 after contracting 4.2% in the same period in 2008. Consumer Non-durables grew by 3.7% compared to 3.2% in December 2008. Overall, Consumer Goods recorded a respectable growth rate of 12% over a measly 1.7% in December 2008. Capital Goods grew by 38.8% in December 2009 compared to 6.6% for the same month of 2008. Intermediate Goods grew by 21.7% in December 2009 after shrinking 8.9% in December 2008. The growth rate in Basic Goods category stood at 7.5% versus 2% in the year-ago period.

Expressing satisfaction at the latest IIP numbers, Finance Minister Pranab Mukherjee said that the third-quarter GDP growth would be strengthened by the strong recovery in the industrial sector. In fact, if the current momentum in the industrial sector continues at the same pace in the next three months, the GDP growth figure for FY10 could actually surpass the Central Statistical Organisation's advance estimate of 7.2%. Mukherjee expects the economy to grow around 7.75% in FY10 while the RBI sees a growth rate of 7.5%.

For April-December 2009-10, industrial output growth stands at 8.6% against 3.6% during the corresponding period in the previous fiscal year.

For the first nine months of the current fiscal year, Manufacturing recorded a growth rate of 9% (3.6% in April-Dec 2008-09), Mining 8.5% (3.2%) and Electricity 5.8% (2.7%), according to the Commerce Ministry data.

The RBI is widely expected to raise interest rates at its April policy review after it surprised markets with a stronger-than-expected rise in the cash reserve ratio (CRR) in its January meeting. The Union Budget, to be announced on Feb. 26, would have a major bearing on the central bank's future course of action. Higher-than-expected government borrowings might prevent the RBI from raising interest rates.

Earlier this month, RBI Governor Duvvuri Subbarao said that the Government's gross market borrowings in the fiscal year ending March 2011 might be slightly higher than FY10 because of redemptions. Bond yields touched a 16-month high of 7.88% on Thursday on uncertainty about government borrowings in the coming fiscal year

October industrial output data misses estimates

India's industrial production grew by 10.3% in October as against flat growth in the same period last year, data released by the Government showed. The stock market and the rupee gave up some gains post the release of the IIP data, which turned out to be lower than consensus forecast of 11-13%. In a seasonally adjusted month-on-month terms, the industrial output fell 1% in October 2009 - the first drop in the past 12 months.

Still, the latest IIP report only goes to buttress the case for a hike in interest rates by the Reserve Bank of India (RBI) and reversal of some of the fiscal stimulus measures by the Government in the near year.

Meanwhile, the Government revised the September IIP growth figure, to 9.6% from 9.1%. India's industrial output expanded by 7.1% in the first seven months of the current fiscal year (April-October 2009-10) versus a growth of 4.3% in the corresponding period of the last financial year.

Growth in the Mining sector stood at 8.2% in October compared to 3.2% in the same month last year. Electricity output grew by 4.7% in the month under review as against 4.4% in the year-ago period. Manufacturing sector output rose by 11.1% versus a contraction of 0.6% in October 2008.

Basic Goods output expanded by 5% in October 2009 as against 3.2% in the same month a year earlier. Growth in Capital Goods output stood at 12.2% in the month under consideration versus 4.2% in October 2008. Intermediate Goods output grew by 14.3% compared to a drop of 4.4% a year ago.

Consumer Goods segment witnessed a growth of 11.8% versus a decline of 0.9% in October 2008. Growth in Consumer Durables stood at 21% as against a contraction of 1.6% last year. Output for Consumer Non-durables was up by 8.1% compared to a fall of 0.6% in October last year.

India's Sept industrial output tops forecast

India’s Industrial Production in September rose by 9.1% as against 6% in the same month last year. Economists had expected IIP growth to come in at around 7-7.5%. The Government announced that it has revised August IIP growth from 10.4% to 11%. Manufacturing output in September stood at 9.3% versus 6.2% YoY. Electricity generation rose by 7.9% versus 4.4% YoY. Mining output expanded by 8.6% versus 5.8% YoY. Basic Goods output growth stood at 6.7% as against 5% in September 2008. Output of Intermediate Goods rose by 10.8% as against a drop of 2.5% in the same month last year. Capital Goods output growth declined to 12.8% from 20.8% YoY. Consumer Goods output grew by 8.2% versus 7.4% YoY. Consumer Durables output expanded by 22.2% as against 14.7% in the year ago period. Consumer non-durable output rose by 2.6% versus 4.8% YoY. Industrial production during the first six months of current fiscal grew by 6.5% as against 5% in the corresponding period of the last fiscal.

IIP rebounds sharply in August

The index of India's industrial production grew by 10.4% in August 2009 which is the highest growth rate so far in the current financial year. First time after October 2007, the index of industrial production (IIP) has registered double digit growth rate. Significantly lower IIP growth rate in August 2008 too could have played a role in boosting the headline number in the month under review. India’s industrial production rose by 5.8% in April-August 2009-10 versus 4.8% in the same period a year earlier. The Government announced that it had revised the July industrial output figure to a growth rate of 7.2% from 6.8% predicted earlier.

Mining production rose by 12.9% as against 2.8% YoY. The manufacturing output climbed by 10.2% as against 1.7% in August 2008, while electricity saw a growth rate of 10.6% versus 0.8% in the same period last year. Consumer Durables output gained 22.3% as against 3.9% in the same period last year. While, Consumer Non-Durables output declined to 3.7% as against 7.3% in the corresponding month last year. Overall Consumer Goods output was at 8.5% versus 6.4% YoY.

Capital Goods production soared to 8.3% from 0.9% in the same month of last year. Basic Goods output was at 10% versus 3.9% in August 2008. Intermediate goods also grew at 14.3%, suggesting strong production going forward. Fourteen of the 17 segments saw growth during August, with seven of these 14 registering double-digit growth. The June IIP numbers had fueled hopes of a better-than-expected recovery, with the index showing 8.2% growth (up from 2.1% in May).