Big worry for PM Modi..Industrial output falls by 50%
| Dec. 12, 2017, 7:24 p.m.
New Delhi, Dec 12: A slowdown in manufacturing sector almost halved the rise in India's factory output in October to 2.2 per cent from 4.14 per cent in September and 4.2 per cent during the corresponding month last year, official data showed on Tuesday.
"The general index for October 2017 stands at 123, which is 2.2 per cent higher as compared to the level in October 2016," the "Quick Estimates" of Index of Industrial Production (IIP) said.
"The cumulative growth for April-October 2017 over the corresponding period of the previous year stands at 2.5 per cent."
As per the IIP data released by the Central Statistics Office (CSO), the slowdown was mainly on account of deceleration in manufacturing and mining outputs.
On a year-on-year basis, the manufacturing sector, which has the maximum weightage in the overall index, expanded by just 2.5 per cent, whereas mining output was a mere 0.2 per cent and the sub-index of electricity generation by 3.2 per cent.
Among the six use-based classification groups, the output of primary goods grew by 2.5 per cent, intermediate goods by 0.2 per cent, consumer non-durables by 7.7 per cent and infrastructure or construction goods by 5.2 per cent and capital goods by 6.8 per cent.
In contrast, the output of consumer durables fell by (-)6.9 per cent
"In terms of industries, 10 out of the 23 industry groups in the manufacturing sector have shown positive growth during October 2017 as compared to the corresponding month the previous year," the CSO said.
According to the data, industry group 'manufacture of pharmaceuticals, medicinal chemical and botanical products' showed the highest positive growth of 23 per cent followed by 12.8 per cent in 'manufacture of motor vehicles, trailers and semi-trailers' and 9.7 per cent in 'manufacture of computer, electronic and optical products'.
On the other hand, the industry group 'other manufacturing' has shown the highest negative growth of (-) 36.4 per cent followed by (-) 20.9 percent in 'manufacture of tobacco products' and (-) 16.1 per cent in 'manufacture of rubber and plastic products'.