March 12, 2016: Industrial Output contracts 1.5%

March 12, 2016: Industrial Output contracts 1.5%

General Studies: Daily Capsule

Curtain Raiser –News Update (March 12, 2016)

Industrial Output contracts 1.5%:

“The Quick Estimates of Index of Industrial Production (IIP) with base 2004-05 for the month of January 2016 have been released by the Central Statistics Office of the Ministry of Statistics and Programme Implementation.

IIP is compiled using data received from 15 source agencies viz. Department of Industrial Policy & Promotion (DIPP); Indian Bureau of Mines; Central Electricity Authority; Joint Plant Committee, Ministry of Steel; Ministry of Petroleum & Natural Gas; Office of Textile Commissioner; Department of Chemicals & Petrochemicals; Directorate of Sugar & Vegetable Oils; Department of Fertilizers; Tea Board; Office of Jute Commissioner; Office of Coal Controller; Railway Board; Office of Salt Commissioner and Coffee Board.” [1]

 “Industrial output shrank for the third straight month, contracting by 1.5 per cent in January 2016. The 1.5 per cent fall in Industrial Output this January was against 2.8 per cent growth in January 2015. Industrial output growth during April 2015-January 2016 was flat at 2.7 per cent.” [2]

“The manufacturing sector, which accounts for nearly 75 per cent of the industrial production index, recorded a fall of 2.8 per cent compared with 3.4 per cent growth in the same period a year ago.” [3]

“In terms of industries, ten out of the twenty two industry groups in the manufacturing sector have shown negative growth during the month of January 2016 as compared to the corresponding month of the previous year. The industry group ‘Electrical machinery & apparatus ’ has shown the highest negative growth of (-) 50.3 percent.”[1]

“Capital goods output— an indicator of investment demand— contracted by 20.4 per cent in January as against a growth of 12.4 per cent a year ago.”[3]

References:

1. http://mospi.nic.in/Mospi_New/upload/iip_11mar16.pdf

2. http://www.thehindu.com/business/Industry/industrial-output-contracts-15-shrinks-for-a-third-straight-month/article8342721.ece

3. http://indianexpress.com/article/business/business-others/iip-shrinks-1-5-on-poor-capital-goods-manufacturing-show/