Breaking News

You are here » Indian-Commodity  :  Economy  :  India's IIP growth slows down to 1.7% in January


India's IIP growth slows down to 1.7% in January

With subdued performance of the manufacturing sector, especially capital and consumer goods, India industrial production measured by Index of Industrial Production (IIP) slowed down to 1.7% in January from 7.5% a year ago. As per the data released by the Central Statistics Office of the Ministry of Statistics and Programme Implementation, IIP with base 2011-12 for the month of January 2019 stood at 134.5, which was 1.7% higher as compared to the level in the month of January 2018. The cumulative growth for the period April-January 2018-19 over the corresponding period of the previous year stood at 4.4%. Meanwhile, the CSO has revised upwards the growth in IIP for December 2018 to 2.6% from the earlier estimate of 2.4%.

On the sectoral front, the growth in the manufacturing sector slowed to 1.3% in January from 8.7% in January 2018. There was also slump in the power generation segment as the expansion was almost flat at 0.8% compared to 7.6% in the year-ago month. However, the silver lining was the mining sector as it grew by 3.9% in January this year compared to 0.3% in the year-ago period. The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of January 2019 stood at 119.2, 135.6 and 150.7 respectively. The cumulative growth in these three sectors during April-January 2018-19 over the corresponding period of 2017-18 has been 3.2%, 4.4% and 5.9%, respectively.

Besides, capital goods segments, a barometer of investment, and intermediate goods segment have witnessed a contraction. The capital goods sector contracted 3.2% in January, down from a growth of 5.9% in the previous month. As per Use-based classification, the growth rates in January 2019 over January 2018 are 1.4% in Primary goods, (-) 3.0% in Intermediate goods and 7.9% in Infrastructure/ Construction Goods. The Consumer durables and Consumer non-durables have recorded growth of 1.8% and 3.8%, respectively.

In terms of industries, 11 out of the 23 industry groups in the manufacturing sector have shown positive growth during the month of January 2019 as compared to the corresponding month of the previous year. The industry group 'Manufacture of food products' has shown the highest positive growth of 17.0% followed by 16.4% in 'Manufacture of wearing apparel' and 10.4% in 'Printing and reproduction of recorded media'. On the other hand, the industry group 'Manufacture of furniture' has shown the highest negative growth of (-) 12.0% followed by (-) 9.0% in 'Manufacture of fabricated metal products, except machinery and equipment' and (-) 6.4% in 'Manufacture of paper and paper products'.

Related News

View all news

India one of the fastest growing large economies in the world: IMF

Emphasizing on several key reforms carried out by India in the last five years, the International Monetary Fund (IMF) stated that the country has been one of the fastest growing large economies in the......

Govt increases investment limit for availing income tax concessions by startups

The government has given a major relief to startups by enhancing definition of startups. It has decided to relax angel tax norms for startups, including increasing the investment limit to Rs 25 crore for......

India needs revolution in farm sector to achieve 9-10% GDP growth: Niti Aayog CEO

Niti Aayog CEO Amitabh Kant has stated that there is need to bring revolution in farm sector to attain 9-10% Gross Domestic Product (GDP) growth. He also said that there is a need to boost investment in......

Top News

View all news

Infosys to enter into agreement with The House Fund II

Infosys is going to enter into an agreement with The House Fund II, L.P., an AI-focused fund targeting startups from the University of California - Berkeley, committing to invest $10.0 million.......

EID Parry receives approval for investment Rs 70 crore in PSRIPL

EID Parry (INDIA) has received approval for investment upto Rs 70 crore in the equity share capital of Parry Sugars Refinery India (PSRIPL), a wholly owned subsidiary of the Company. The Board of directors......

SBI raises Rs 1,251 crore by issuing Basel III-compliant bonds

State Bank of India (SBI) has raised Rs 1,251.30 crore by issuing Basel III-compliant bonds. The Committee of Directors for Capital Raising at its meeting held on 22 March 2019 deliberated and accorded......