India’s IIP Falls
World Economy

India’s IIP Falls

India’s industrial output contracted by 0.8% in April, the first decline in three months, due to drastic fall in capital goods production and manufacturing activities, prompting demands for pro-active measures by the government to boost demand.
Factory output measured in terms of the Index of Industrial Production had expanded by 3% in April last year. As per the index of industrial production (IIP), capital goods output, a barometer of investment, declined sharply by 24.9% in April as against a growth of 5.5% in the same month last year, dna reported.
The Central Statistics Office data released Saturday revealed that manufacturing, which constitutes over 75% of the index, contracted by 3.1% in contrast to a growth of 3.9% in April last year.
Industrial production had declined by 1.6% in January this year. The IIP had registered a growth of about 2% in February. The provisional estimate of 0.1% growth in March was revised slightly upwards to 0.3%.
Observing that delay in monsoon could limit room for a rate cut by Reserve Bank of India, industry body Assocham asked the government to urgently take pro-active steps to check the supply situation and help the industry maintain growth momentum.
Devendra Kumar Pant, chief economist, India Ratings opined that efforts by the government to kick-start investment and increase manufacturing base will take more time.
“Investment growth is unlikely to improve any time soon and government (center and states) with 16% share has limited capacity to kick-start investment,” he said.
The IIP data showed lower demand as overall consumer goods output dipped by 1.2% in April as against a growth of 2.8% year ago.
The consumer non-durable segment output too declined 9.7% against a growth of 3.7% year ago.

Short URL : http://goo.gl/ZyBSho
  1. http://goo.gl/dF3af7
  • http://goo.gl/QWpkM0
  • http://goo.gl/BWLRiI
  • http://goo.gl/0SWYWO
  • http://goo.gl/trwIU6

You can also read ...

Bithumb Hacked, $32m in Cryptocurrency Stolen
Cryptocurrencies dropped after the second South Korean...
South Africa GDP Shrinks
South African gross domestic product shrank 2.2% in the first...
Washington in March imposed tariffs of 25% on steel and 10% on aluminum, in a move mainly aimed at curbing imports from China.
Russia said on Tuesday it would impose import duties on US...
Saudi Arabia, which employs about two-thirds of its citizens, is chipping away at a budget deficit that ballooned to almost 16% of GDP after the oil shock of 2014, while FDI slumped more than 80% last year.
Show up, swipe in. The routine is familiar to office workers...
Taxes in Italy Drive Economy Underground
Italy grew rapidly over the 20th century, and its black market...
European businesses say it has become harder to do  business in China over the past year.
European companies complain they still face a tough business...
Australian Telecom Co. to Axe 8,000 Jobs
Australia’s dominant telecommunications company Telstra...
South Korea to Grow 3 Percent
The Organization for Economic Cooperation and Development has...