by admin | May 25, 2021 | Business, Large Enterprise
New Delhi : 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’.
—IANS
by admin | May 25, 2021 | Economy, Markets, News
Photo: Reuters
New Delhi : Even as retail inflation in India stagnated in September with a marginal drop in the food prices, the Index of Industrial Production (IIP) for August showed that factory output grew 4.3 per cent against the same month last year on the back of robust mining and electricity sector growth, official data showed on Thursday.
According to the Ministry of Statistics and Programme Implementation, September’s consumer price index (CPI) inflation remained static at 3.28 per cent as compared to August.
On a sequential basis, the country’s Consumer Food Price Index (CFPI) dropped to 1.25 per cent during the month under review when compared to 1.52 per cent in August 2017.
However, on a year-on-year (YoY) basis, the country’s September retail inflation was lower than the 4.39 per cent CPI rate reported for the corresponding month of last year.
The drop in retail inflation on a YoY basis was due to a fall in the prices of food items like pulses, eggs and spices. Vegetables in September became costlier by 3.92 per cent, while cereals prices rose by 3.70 per cent.
As against the 4.3 per cent growth in August, manufacturing output in the country in July 2017 had grown marginally by 1.2 per cent as compared to the corresponding month of last year.
As per the new IIP, with the revised base year of 2011-12, factory output had declined by (-)0.1 per cent during June due to a drop in manufacturing, from a rise of 2.80 per cent reported for May this year.
The cumulative growth for the period April-August 2017 was at a much lower 2.2 per cent, over the corresponding period of last year.
Data released by the Central Statistics Office (CSO) showed that the August growth was partly led by a revival in electricity, which grew at 8.3 per cent over the same month last year.
Manufacturing output, which has the maximum weightage in the overall index, grew at 4.3 per cent in August, as against 5.5 per cent during the same month of last year.
Mining output during the month in consideration recorded impressive growth of 9.4 per cent, as compared to the decline in August last year at (-)4.3 per cent.
Among the six use-based classification groups, the output of primary goods grew by 7.1 per cent, consumer non-durables by 6.9 per cent and infrastructure or construction goods by 2.5 per cent.
Both capital goods and consumer durables recovered from last month’s decline to grow in August at 5.4 per cent and 1.6 per cent, respectively.
In contrast, the output of intermediate goods declined by (-)0.2 per cent.
“In terms of industries, 10 out of the 23 industry groups in the manufacturing sector have shown positive growth during the month of August 2017 as compared to the corresponding month of the previous year,” the CSO said.
“The industry group ‘Manufacture of computer, electronic and optical products’ has shown the highest positive growth of 24.9 per cent, followed by 16.5 per cent in ‘Manufacture of pharmaceuticals, medicinal chemical and botanical products. On the other hand, the industry group ‘Manufacture of furniture’ has shown the highest negative growth of (-)16.0 per cent followed by (-)15.1 per cent in ‘Manufacture of tobacco products’ and (-)1.4 percent in ‘Printing and reproduction of recorded media’,” it added.
Industry welcomed the numbers indicating a rebound in industrial growth.
“Rebound in IIP is inspiring after a slowdown in the months of June 2017 and July 2017 vis-a-vis destocking and teething problems of GST,” President PHD Chamber Gopal Jiwarajka said in a statement here.
“Industrial activity shrugged off the weakness of past few months and put up a strong performance in August, suggesting that GST-related disruptions could have somewhat settled,” rating agency CRISIL said in a statement.
“In the months ahead, inflation could see an upside from some bump up in oil prices, and higher household spending led by (i) implementation of farm loan waiver and (ii) an expected upward revision in salary and allowances of state government employees,” it added.
—IANS
by admin | May 25, 2021 | Business
Mumbai:(IANS) Hopes of a rate cut and expectations of importing cheaper oil from Iran after it signed a nuclear deal with the world powers cheered the Indian equity markets on Wednesday, with the 30-scrip sensitive index (Sensex) of the S&P Bombay Stock Exchange (BSE) gaining more than 255 points during the late-afternoon trade session.
The wider 50-scrip Nifty of the National Stock Exchange (NSE) also made gains during the session under review. It was trading 70 points or 0.83 percent up at 8,524.10 points.
The Sensex of the S&P BSE, which opened at 28,022.14 points, was trading at 28,188.99 points (2.30 p.m.), up 256.09 points or 0.92 percent from the previous day’s close at 27,932.90 points.
The Sensex so far touched a high of 28,218.37 points and a low of 27,986.48 points in the intra-day trade.
“There is still hope of a rate cut by the Reserve Bank of India (RBI). Both the Consumer Price Index (CPI) and Wholesale Price Index (WPI) have almost come inline with the earlier estimates. These factors coupled-with a good monsoon has renewed hopes of a rate cut in August,” Anand James, co-head, technical research desk, Geojit BNP Paribas, told IANS.
On July 10, the Index of Industrial Production (IIP) showed a slow down in India’s overall industrial production expansion to 2.7 percent for May – against 4.1 percent in April.
On Monday, official data showed that a rise in food and fuel prices propelled India’s retail inflation to 5.40 percent in June from 5.01 percent in May.
However, On Tuesday, India’s annual inflation rate based on wholesale prices continued in the negative territory in June, falling to (-)2.4 percent from (-)2.36 percent in May.
India Inc. is pinning its hopes on these data points in expectations of rate cut by the RBI.
The RBI had lowered its short-term lending rate by 25 basis points in its monetary policy review in June.
That time RBI Governor Raghuram Rajan said the central bank’s next move will be data-dependent. It will also keep an eye on how monsoon progresses and the steps taken by the government to mitigate its negative effects, Rajan had added.
“Other factor for the healthy buying is the Iran nuclear deal. The deal is important for India as it can now import more oil from Iran on cheaper rates and increase its exports of pharmaceutical and other products to that country,” James added.
Industry experts foresee oil prices to plunge– as and when Iran resumes to export oil at the pre-sanction levels. The Middle East state is believed to have around 25-30 million barrels of oil ready for exports.
After Tuesday’s massive volatility in Brent index stood at $58.51 and the West Texas Intermediate (WTI) gained to $53 per barrel on Wednesday. The WTI had fallen to $44 per barrel on Tuesday.
Tuesday’s sharp fall in both WTI and Brent indices cheered the Indian equity markets markets.
Sector-wise, majority of the 12 sectoral indices of the S&P BSE were trading higher except for the consumer durables index.
The S&P BSE automobile index zoomed by 221.28 points, healthcare index augmented by 160.63 points, the information technology (IT) index jumped by 129.28 points, capital goods index was higher by 116.30 points and technology, entertainment and media (TECK) index was up by 61.48 points.
However, consumer durables index fell by 125.30 points.
