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Nov industrial output rises by 1.8 pc
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SME Times News Bureau | 10 Jan, 2020
Healthy rise in manufacturing on the back of festive season
demand expanded India's November Index of Industrial Production (IIP) by 1.8
per cent in November mainly on account of improvement in the manufacturing
sector, said government data on Friday. This is the first time since August 2019 that the macro-economic factory
production gauge -- the Index of Industrial Production -- has shown a
rise.
The index had reported a fall of (-) 3.9 per cent in October, (-) 4.3 per cent in September and (-) 1.4 in August.
On
a year-on-year basis, the growth rate of factory output during the
month under review also surpassed the 0.2 per cent recorded during
November 2018.
"The Quick Estimates of Index of Industrial
Production (IIP) with base 2011-12 for the month of November 2019 stands
at 128.4, which is 1.8 per cent higher as compared to the level in the
month of November 2018," the Ministry of Statistics & Programme
Implementation said.
"The cumulative growth for the period
April-November 2019 over the corresponding period of the previous year
stands at 0.6 per cent."
As per the data, the output rate of the manufacturing sector rose by 1.7 per cent in November from a YoY rise of 2.7 per cent.
Similarly,
the output of other notable sector such as mining activity increased by
2.7 per cent from a YoY fall of (-) 0.7 per cent, whereas the sub-index
of electricity generation was lower by (-) 5 per cent from a rise of
5.1 per cent.
"As anticipated, a favourable base effect led to
the IIP posting a turnaround to a mild growth in November 2019, although
the pace of the same trailed our expectations," said ICRA's Principal
Economist Aditi Nayar.
"Disaggregated data provides mixed cues,
with five of the six use-based categories, except intermediate goods,
posting a sequentially improved performance in November 2019, even as
four of the categories continued to report an unenthusing YoY
contraction in that month."
Rajat Bahl, Chief Analytical officer
and Head Financial Institutions, Brickwork Ratings, said: "This recoup
in growth is partly attributed to festive demand as most of the
manufacturing products like textiles, wearing apparel, etc, witnessed a
spike in production growth."
"To sustain the recovery in the manufacturing sector, production in other major manufacturing products also needs to pick up."
Among
the six use-based classification groups, the output of primary goods,
which has the highest weightage of 34.04, fell by (-) 0.3 per cent. The
output of intermediate goods, which has the second highest weightage,
zoomed 17.1 per cent.
While consumer non-durables output grew by 2 per cent, whereas the consumer durables declined (-)1.5 per cent.
Output
of infrastructure or construction goods decreased by (-)3.5 per cent,
similarly, capital goods' production receded by (-)8.6 per cent.
In
terms of industries, 13 out of the 23 industry groups in the
manufacturing sector have shown positive growth during the month under
review as compared to the corresponding period of the previous year.
"Minor
recovery in the IIP is a function of a favourable base effect, which
will continue to benefit until the end of the financial year," said
Karan Mehrishi, Lead Economist at Acuite Ratings & Research.
"On
these lines, manufacturing, which was contracting continuously for the
previous three months has received a fillip from the contraction in
November 2018 (base year). Segments without such benefit have maintained
their negative outlook, baring consumer non-durables (use based)."
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Customs Exchange Rates |
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Import |
Export |
US Dollar
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64.50 |
UK Pound
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87.50
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84.65 |
Euro
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78.25
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75.65 |
Japanese
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56.85 |
As on 13 Aug, 2022 |
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