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Industrial output lowers in June
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SME Times News Bureau | 12 Aug, 2017
A decline in the manufacturing sector brought down India's factory output in June, official data showed on Friday.
The
factory output, as per the new Index of Industrial Production (IIP)
with revised base year of 2011-12, declined by (-)0.1 per cent during
June from a rise of 2.80 per cent reported for May, 2017.
The factory output had expanded by eight per cent in the corresponding month of the previous year.
On a year-to-date basis, the output rose by 2 per cent during April-June, 2017.
As
per the IIP data released by the Central Statistics Office (CSO), last
month's contraction was mainly on account of a (-)0.4 per cent
deceleration in manufacturing output, which has the maximum weight in
the overall index.
Besides manufacturing, the output of other two
major sub-indices -- mining and electricity -- slowed during the month
under review.
The mining output inched-up by 0.4 per cent and that for electricity generation edged higher by 2.1 per cent.
Among
the six use-based classification groups, the output of primary goods
contracted by (-) 0.2 per cent, (-) 0.6 per cent in intermediate goods,
consumer durables declined by (-) 2.1 per cent and capital goods' was
lower by (-) 6.8 per cent.
In contrast, the output of consumer
non-durables edge-higher by 4.9 per cent and 0.6 percent in
infrastructure or construction goods.
"In terms of industries,
fifteen out of the twenty three industry groups in the manufacturing
sector have shown negative growth during the month of June 2017 as
compared to the corresponding month of the previous year," the "Quick
Estimates of IIP" for the month of June 2017 said.
"The industry
group ‘manufacture of electrical equipment' has shown the highest
negative growth of (-) 20.1 percent... On the other hand, the industry
group ‘other manufacturing' has shown the highest positive growth of
28.1 per cent."
India Inc expressed grave concern over the fall in manufacturing sector's output and urged for more reforms.
Commenting
on the IIP data for June, A. Didar Singh, Secretary General, Ficci
said: "The fall in manufacturing which is more broadbased this time is a
cause for concern and underlines the need for more reforms especially
at the state level. This is important to improve the investment climate
further." "Besides reforms at the state level, we need to ensure
faster development of our infrastructure which is a major enabler of
growth and instrumental in reducing the cost of doing business in the
country to make our manufacturing competitive."
Another key
industry body Assocham said that latest estimates of IIP point to
negative sign towards the growth cycle of industrial activity.
"Considering
the need for creating conducive environment for investments, capacity
utilisation and augmentation of industrial production on priority basis
the Government of India must initiate more effective short term revival
measures," said D.S. Rawat, Secretary General, Assocham.
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Customs Exchange Rates |
Currency |
Import |
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US Dollar
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UK Pound
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87.50
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84.65 |
Euro
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75.65 |
Japanese
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56.85 |
As on 13 Aug, 2022 |
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