Diwali effects jack up IIP for October
DWALI EFFECT ON IIP NUMBERS
? IIP, mining, manufacturing and electricity expanded at bloated rates due to base effects.
Filtering for month-tomonth variations, industry has grown further over AprilOctober period on the back of strengthening manufacturing. IIP increased 4.8 per cent (2.2 per cent) during the first seven months of the ongoing fiscal. Manufacturing expanded 5.1 per cent against stagnation in the similar period in last two years. Mining was up 2 per cent (2.1 per cent) and electricity 5.2 per cent (10.8 per cent).
In manufacturing, 7 out of 22 major industries declined cumulatively, whereas the 15 others were in positive growth phase. Furniture, gems & jewellery, etc shot up 59 per cent. The industry, comprising mainly gems & jewellery, is turning out superlative output since around December 2014. Wearing apparel increased 12 per cent and electrical machinery 15 per cent. Basic
Capital goods put up robust show
Helped by a strong Q2 performance, capital goods index showed 8.9 per cent expansion till October, twice the pace a year ago, and a decline two years back. Cement production increased 2.6 per cent, but alloy, non-alloy steel declined over the period. These commodities are important inputs in construction part of projects investment. Consumer durables increased 12 per cent, against 16 per cent decline in this period a year ago. Constituting mainly passenger cars, motor cycles and gems & jewellery, the usebased group seems to be coming out of a prolonged JuneNovember 2014 slack. Consumer non-durables stagnated at year ago level as in the corresponding period a year ago. Basic goods grew less. Intermediate goods index fared slightly better.