The statistics ministry has proposed the new base year for GDP and IIP as 2017-18 while for CPI it will be 2018.
As per use-based classification, primary good registered a growth of 7.4 per cent, intermediate goods 22.4 per cent, and infrastructure/construction goods 0.1 per cent in February 2020 as against the same period a year ago.
This growth seen by the consumer goods was led mainly by the durables market, which rose 17.6%, the highest in 11 months
The internals of the food inflation are worrying, given a broad-based uptick across categories that tend to be sticky, such as proteins, and a narrower-than-expected reduction in inflation for vegetables.
With retail inflation surprising on the upside, the six-member monetary policy committee (MPC) of the Reserve Bank of India (RBI) is expected to increase the repo rate by 35-50 basis points (bps) in the review scheduled for September 28-30. According to economists, the central bank will continue to focus on bringing inflation down even though economic growth has remained sluggish. Data released by the government on Monday showed that the consumer price index (CPI)-based inflation increased by 7 per cent year-on-year (YoY) in August, thus, staying above the upper tolerance limit of the central bank for all the eight months of 2022.
While the manufacturing sector grew by 13.3 per cent during the month, the performance of the mining and electricity sectors remained poor at 3.7 per cent and 4.2 per cent respectively, said the Index of Industrial Production released by the government on Wednesday.
Most of the economic activity in the country had come to a standstill after the government imposed a 21-day nationwide lockdown beginning March 25 to check the spread of coronavirus.
The sharp rise was also due to a statistical illusion -- low industrial numbers in November 2015, and sharp reversal of a 12-month declining trend in capital goods.
ICICI Bank was the top gainer in the Sensex pack, surging nearly 3 per cent, followed by HDFC, Axis Bank, Sun Pharma, NTPC and M&M. NSE Nifty surged 119.75 points to 15,812.35.
Analysts believe that investors should look at stocks that hit 52-week lows only if they have a dividend paying track record, are debt-free and have sound fundamentals.
In October 2010, the index of industrial production had expanded by 11.29 per cent.
In October, the general index had declined by 4.2 per cent, while its manufacturing component went down by an even more alarming 7.6 per cent.
The IIP data showed a significant slowdown in the manufacturing sector, which grew at 4.2 per cent in July 2019 as compared to 7 per cent a year ago.
Quarterly earnings from IT majors Infosys and Wipro, macroeconomic data announcements and global cues would be the major drivers for the equity markets this week, said analysts. Leading IT companies Infosys and Wipro and other players such as Mindtree, Tata Elxsi and HDFC AMC would announce their financial results this week. Moreover, industrial production numbers, retail and wholesale inflation data would be released this week.
IIP growth rises to 9-month high of 4.3 pc in August
There was a slowdown in the manufacturing sector, which grew at 1.2 per cent in June 2019 as compared to 6.9 per cent a year ago.
Poor industrial production & lower agri output to further drag GDP growth rates.
Industrial output rose to nearly three-year high of 6.4% in August.
Domestic equity markets are likely to see volatility in a range-bound trade this week amid geopolitical worries and growing expectations of a sharp hike in interest rates, analysts said. Global trends, inflation data and the last batch of quarterly earnings will drive the markets this week, they said. Besides, the rupee movement, FII investment pattern and Brent crude trends would also be watched by investors.
Driven by a surge in manufacturing sector, the Index of Industrial Production is estimated to grow at 7.5 per cent in the current fiscal, according to Centre for Monitoring Indian Economy.
Expressing disappointment over dismal 0.1 per cent industrial growth rate in April, Finance Minister Pranab Mukherjee said the government would take steps to give positive signals to the industry.
Mobile phone manufacture in India started only in 2006.
Buoyed by the upbeat performance of the manufacturing sector, including metals, Centre for Monitoring Indian
Heavy institutional buying in banks and technology counters helped the Bombay Stock Exchange's benchmark index end at an over seven-month high, overcoming uncertainty on the outcome of the elections and weaker-than-expected industrial output data.
New Delhi says existing food stocks will be sufficient to contain any food price shock.
Markets end marginally higher supported by IT shares as Infosys's Q3FY14 results boosted sentiment.
The new IIP numbers should spread cheer among those who were part of the Manmohan Singh-led United Progressive Alliance, earlier accused of having presided over a steady deterioration in industrial performance, particularly in the last two years of its tenure, says A K Bhattacharya.
.jpg)
After a string of extremely low and even negative monthly numbers, the industrial sector grew by 2.6 per cent year on year, far exceeding expectations.
Slowdown in industrial production notwithstanding, a marginal increase in inflation raised the clamour for another round of rate cut by the Reserve Bank on April 4 to boost economic activity.
Production of coal, crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity contracted. The record contraction in the growth rate of eight core sectors will affect the Index of Industrial Production.
The manufacturing sector recorded the double-digit growth rate at 10.4 per cent during August, although down from 11.9 per cent a year ago, the mining sector growth rate improved significantly to 17.1 per cent against a decline of 1.7 per cent in the corresponding month last year.Electricity generation during August grew by 9.2 per cent as compared to 4.1 per cent a year ago.
The fiasco over error-ridden national accounts for the first quarter of the financial year has prompted Anant, who used to teach statistics at Delhi School of Economics, to initiate a documentation of processes. Besides, at the behest of the National Statistical Commission, he has ordered an audit of the methodology of preparing the index of industrial production (IIP).
Capital goods output rose by a robust 20 per cent in the month under review as against a contraction of 2.4 per cent earlier.
These core industries comprise 40.27 per cent of the weight of items included in the Index of Industrial Production.
The Index of Industrial Production, which measures the industrial growth, for July is scheduled to be released by the government on Friday.
As many as seven of eight core industries saw a contraction in output in September.
They feel reducing policy rates will help to boost production and revive the economy.
Indian industry began this financial year on a strong foot, with robust growth of 17.6 per cent in April. This has surpassed analyst expectations and fuelled concerns of a rate hike by the Reserve Bank of India (RBI).
Markets end flat ahead as investors turned cautious and booked profits ahead of Jan IIP, Feb CPI data.
Slow growth in the key sectors would have implications on the IIP number as these segments account for about 41 per cent of the total factory output.
© 2026 Rediff.com - Advertise with us - Disclaimer - Privacy Policy - Sitemap - Feedback - About us - Terms of use - Grievances