Breaking News

You are here » Indian-Commodity  :  Economy  :  India's IIP growth slows down to 4.4% in March


India's IIP growth slows down to 4.4% in March

With contraction in capital goods segment and sluggish growth in mining sector, India's industrial production measured by Index of Industrial Production (IIP) slowed down to 4.4% in the month of March 2018, as compared to 7.1% growth recorded in previous month. This is the first time in four months that the IIP recorded less than 7% growth. Besides, the industrial output index grew by 4.4% in March 2017.

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 2018, stood at 139.0, which is 4.4% higher as compared to the level in the month of March 2017. The cumulative growth for the period April-March 2017-18 over the corresponding period of the previous year stood at 4.3% lower than 4.6% in the previous fiscal.

On the sectoral basis, the manufacturing segment, which constitutes the bulk of the index at 77.6%, saw sharp slowdown in March 2018 at 4.4% as compared to 8.7% in February. In March last year, manufacturing growth came in at 3.3%. However, mining recorded sharp fall in growth at 2.8% as compared to 10.1% growth in same month last year, while it had contracted 0.3 percent in February 2018. Besides, electricity sector recorded 5.9% growth in March 2018 as compared to 6.2% in same month last year, while, in February 2018, electricity sector grew 4.5%. The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of March 2018 stand at 131.3, 138.6 and 156.7 respectively. The cumulative growth in these three sectors during April-March 2017-18 over the corresponding period of 2016-17 has been 2.3%, 4.5% and 5.4% respectively.

On the other hand, capital goods output, a proxy to measure private sector investment activity, contracted by 1.8% during March as compared to a growth of 9.4% in the corresponding period last year. However, consumer durables output showed an increase of 2.9% as against decline of 0.6% in March 2017. The consumer non-durables segment showed an impressive growth of 10.9% in March as against 7.5% in corresponding month last year. As per Use-based classification, the growth rates in March 2018 over March 2017 are 2.9% in Primary goods, 2.1% in intermediate goods and 8.8% in Infrastructure/ Construction Goods. 

In terms of industries, 11 out of the 23 industry groups in the manufacturing sector have shown positive growth during the month of March 2018 as compared to the corresponding month of the previous year. The industry group 'Manufacture of furniture' has shown the highest positive growth of 41.5% followed by 20.6% in 'Manufacture of food products' and 17.2% in 'Manufacture of motor vehicles, trailers and semi-trailers'. On the other hand, the industry group 'Other manufacturing' has shown the highest negative growth of (-) 30.7% followed by (-) 20.6% in 'Manufacture of tobacco products' and (-) 18.6% in 'Manufacture of wearing apparel'.

Related News

View all news

India can add $700 billion to its economy if women workforce doubles: Amitabh Kant

Expressing optimism over growth of Indian economy, the NITI Aayog's chief executive officer Amitabh Kant said that if the women workforce increases to 48% from the 24% present, the country can add an additional......

Govt initiating multiple reforms to double farmers' income by 2022: P K Mishra

Additional Principal Secretary to the Prime Minister, P K Mishra has said that the government is making utmost efforts with an integrated approach and has initiated multiple reforms to achieve the ambitious......

ASSOCHAM flags concerns on liquidity crisis; seeks measures from RBI

Raising concerns over recent liquidity crisis in non-banking financial companies (NBFC), the industry chamber, Associated Chambers of Commerce and Industry of India (ASSOCHAM) has stated that the Reserve......

Top News

View all news

RITES to acquire 33% stake in IRSDC

RITES has received in principle approval to acquire stake of 33% Equity Shares in Indian Railway Station Development Corporation (IRSDC). The Board of Directors of the company at their meeting held on......

Govt in favour of alignment of capital adequacy norms with Basel III norms

Instead of present stricter guidelines which restrict the lending capacity of lenders, the government is of the view that the Reserve Bank of India (RBI) should resort to Basel III norms for capital adequacy......

Infosys, Ashok Leyland and Reliance Infrastructure to see some action today

Infosys will open its next Technology and Innovation Hub in the State of Texas and hire 500 American workers in the state by 2020. The Hub will be located in Richardson, Texas and have a special focus......