IN­DIA’S IN­DUS­TRIAL OUT­PUT GROWTH RATE SLOWS

Ten out of twenty three in­dus­try groups in the man­u­fac­tur­ing sec­tor show pos­i­tive growth

The Gulf Today - Business - - FRONT PAGE -

NEW DELHI: A de­cline in the man­u­fac­tur­ing sec­tor, es­pe­cially that of cap­i­tal goods, sharply de­cel­er­ated In­dia’s in­dus­trial out­put growth rate to 0.5 per cent in Novem­ber, its low­est rise since June 2017.

“In terms of in­dus­tries, ten out of the twenty three in­dus­try groups in the man­u­fac­tur­ing sec­tor have shown pos­i­tive growth dur­ing the month of Novem­ber 2018 as com­pared to the cor­re­spond­ing month of the pre­vi­ous year,” the state­ment said.

The coun­try’s in­dus­trial pro­duc­tion had recorded a rise of 8.4 per cent in Oc­to­ber and 8.5 per cent dur­ing the cor­re­spond­ing pe­riod of the pre­vi­ous fis­cal.

As per the data fur­nished by the Cen­tral Sta­tis­tics Of­fice (CSO), the out­put rate of the man­u­fac­tur­ing sec­tor fell by (-) 0.4 per cent in Novem­ber from a year-on-year rise of 10.4 per cent.

“The ‘Quick Es­ti­mates of In­dex of In­dus­trial Pro­duc­tion’ (IIP) with base 2011-12 for the month of Novem­ber 2018 stands at 126.4, which is 0.5 per cent higher as com­pared to the level in the month of Novem­ber 2017,” the CSO said in a state­ment.

“The cu­mu­la­tive growth for the pe­riod April-novem­ber 2018 over the cor­re­spond­ing pe­riod of the pre­vi­ous year stands at 5 per cent.”

MIN­ING PRO­DUC­TION

On a YOY ba­sis, min­ing pro­duc­tion edged-up by 2.7 per cent and the sub-in­dex of elec­tric­ity gen­er­a­tion in­creased by 5.1 per cent.

Among the six use-based clas­si­fi­ca­tion groups, the out­put of pri­mary goods, which has the high­est weigh­tage of 34.04 grew by 3.2 per cent. The out­put of in­ter­me­di­ate goods, which has the sec­ond high­est weigh­tage, fell by (-) 4.5 per cent.

Sim­i­larly, out­put of con­sumer non-durables inched lower by (-) 0.6 per cent and that of con­sumer durables by (-) 0.9 per cent.

In ad­di­tion, out­put of in­fra­struc­ture or con­struc­tion good in­creased by 5 per cent, how­ever that of cap­i­tal goods by (-) 3.4 per cent.

“In terms of in­dus­tries, ten out of the twenty three in­dus­try groups in the man­u­fac­tur­ing sec­tor have shown pos­i­tive growth dur­ing the month of Novem­ber 2018 as com­pared to the cor­re­spond­ing month of the pre­vi­ous year,” the state­ment said.

“The in­dus­try group ‘Man­u­fac­ture of fab­ri­cated metal prod­ucts, ex­cept ma­chin­ery and equip­ment’ has shown the high­est neg­a­tive growth of (-) 13.4 per cent fol­lowed by (-) 9.6 per cent in ‘Man­u­fac­ture of elec­tri­cal equip­ment’ and (-) 7.3 in ‘Other man­u­fac­tur­ing’.”

Ac­cord­ing to Su­nil Ku­mar Sinha, Di­rec­tor — Pub­lic Fi­nance and Prin­ci­pal Econ­o­mist, In­dia Rat­ings and Re­search: “Fac­tory out­put growth af­ter av­er­ag­ing 5.6 per cent till Oc­to­ber in FY19 sud­denly dipped to 0.5 per cent in Novem­ber 2018. This is the worst growth per­for­mance of IIP since June 2017 when fac­tory out­put had con­tracted by 0.3 per cent in re­sponse to the roll out of GST from July 2017.”

“But for the sup­port com­ing from in­fra­struc­ture and pri­mary goods the in­dus­trial growth in Novem­ber 2018 would have been neg­a­tive as all other use based sec­tors namely cap­i­tal goods, in­ter­me­di­ate goods, con­sumer durables and con­sumer non­durables wit­nessed con­trac­tion in Novem­ber 2018.”

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