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Tags Current Affairs

IIP growth turns positive

Date: 11 January 2020 Tags: Industries

Issue

Having contracted for three months in a row, the Index of Industrial Production (IIP) recorded a growth of 1.8% in November mainly on account of improvement in the manufacturing sector.

 

Background

According to the National Statistical Office (NSO) data, the growth in the manufacturing sector was 2.7% as against a contraction of 0.7% in the same month last year.

 

Details

  • Electricity generation turned negative (-) 5% as against a growth of 5.1% in November 2018.

  • Mining sector output decelerated to 1.7% from 2.7% in the year ago month.

  • The IIP growth during April-November period of the current fiscal came in at 0.6%, down from 5% in the same period of 2018-19.

  • The data for the November month further revealed that production of capital goods, a barometer of investment, contracted by 8.6%. This compares with a contraction of 4.1% in November 2018.

  • There was a contraction of 3.5% in the infrastructure and construction goods segment.

  • As per the NSO data, 13 out of the 23 industry groups in the manufacturing sector showed positive growth during November 2019 as compared to the corresponding month of the previous year.

  • The industry group manufacture of wood and products of wood and cork, except furniture, manufacture of articles of straw and plaiting materials has shown the highest positive growth of 23.2 per cent followed by 12.9 per cent in manufacture of basic metals.

  • The industry group ‘other manufacturing’ has shown the highest negative growth of (-) 13.5% followed by (-) 12.6% in ‘manufacture of motor vehicles, trailers and semi-trailers’.

IIP

  • The Index of Industrial Production (IIP) is an index for India which details out the growth of various sectors in an economy such as mineral mining, electricity and manufacturing.

  • The all India IIP is a composite indicator that measures the short-term changes in the volume of production of a basket of industrial products during a given period with respect to that in a chosen base period.

  • It is compiled and published monthly by the Central Statistics Office (CSO), Ministry of Statistics and Programme Implementation six weeks after the reference month ends.

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