SME Times is powered by   
Search News
Just in:   • Elections over, now focus must shift to economy  • Nilekani advises certification for skills in food services  • Markets surge: Sensex hits record high  • Tariffs on shoes 'catastrophic': Sneaker brands tell Trump  • Air Asia India eyes corporate clients, foreign flights 
Last updated: 15 Jan, 2018  

Manufacturing.9.Thmb.jpg Manufacturing relief

Manufacturing.9.2.jpg
   Top Stories
» Investment needed urgently as consumption hit: Experts
» World gets redefined units of measurement
» Naidu expresses anguish over falling quality of poll debates
» Reuters report on Swachh Bharat incorrect: Ministry
» 'US-China trade war an opportunity for textiles sector'
Bikky Khosla | 15 Jan, 2018
In a signal that the economy is in a recovery mode, industrial production jumped to a 25-month high in November. In the previous month, the IIP index had hit a three-month low of 2.2 percent, raising widespread concern, and now the strong data is definitely worth celebrating. Of course, a favourable base effect and inventory rebuilding after the festive season helped the spike, but it seems the worst is over for the economy. After going through a pretty rough period of structural reforms and disruptions caused by them, the economy is now beginning to gain ground.

Giving a deeper look into the IIP data reveals some pleasant surprises. Manufacturing sector output grew by 10.2 percent in November. This sector had borne the brunt of the note ban and the GST, and now the sector's turnaround is welcome. The robust numbers mirrored the recently published 13-month high purchasing managers' index numbers, and if this trend continues we can expect better performance by the sector in December again, considering the December PMI that hit a five-year high to 54.7.

The capital goods and consumer durables figures have also come as a big relief. The November data set shows 9.4 percent growth in capital goods output. The growth rate was 5.3 percent a year ago. This shows that investment is picking up. Similarly, 2.5 percent growth in consumer durables, against 6.9 percent contraction in the month before, shows revival in demand. Additionally, intermediate goods and construction goods have also performed well, making the recovery look broad-based.

Concerns have rightly been expressed by some economy watchers that one month of data does not change the story. Well, no doubt about it. But it is difficult to ignore the fact that the IIP data, along with robust core sector growth, surge in commercial vehicle sales and high exports growth are all pointing in the direction of a revival soon. Particularly, the manufacturing sector now appears to be out of the woods. If this trend continues, the economy will get a big fillip.

I invite your opinions. 
 
Print the Page Add to Favorite
 
Share this on :
 

Please comment on this story:
 
Subject :
Message:
(Maximum 1500 characters)  Characters left 1500
Your name:
 

Manufacturing relief
kaushikk vyas | Sun Jan 21 06:43:15 2018
Sir, The articcle is really informative, but always have one question, whether any such date published thru various agencies are really authantic or cooked? Many small scale units manufactring datas are never taken into consideration. A small unit simply doing the foundry molding jobs say for electric motor casing , does it alo overed r only thefinished goods and the one exported? Like these there are many ifs and buts. Similarly when getting gsme grothmarking by many international agencies are contradictory to oneanother. Does it work on spculation and with different measures that each agency take into account?


GST REFUND ON EXPORTS
Sharad ganeriwalla | Sun Jan 21 01:34:32 2018
What is Govt doing to refund GST ON EXPORTS?


 
  Customs Exchange Rates
Currency Import Export
US Dollar
66.20
64.50
UK Pound
87.50
84.65
Euro
78.25
75.65
Japanese Yen 58.85 56.85
As on 21 May, 2019
  Daily Poll
Is counterfeiting a major threat to SMEs?
 Yes
 No
 Can't say
  Commented Stories
» Starting an import export business: Basic guide for beginners(1)
» The Silk Road - A journey through history(1)
» RBI cuts key rates by 50 basis points(1)
 
 
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter