The new IIP series based on the new base year, is expected to lead to better capturing of ground data
The overall index showed an increase of 2.4 per cent over November 2007, which is not a great performance but apparently different from the 1.4 per cent decline in the previous month. However, the base effect seems to be largely responsible for both numbers.
Sectors which recorded positive growth were coal, refinery products and fertiliser.
The overall breadth was neutral as 1,506 stocks declined while 1,435 stocks advanced.
India's factory output climbed 22.4 per cent in March, benefiting from the base effect of the lockdown-marred month a year back as well as a turnaround in the manufacturing sector, while retail inflation slipped to a three-month low of 4.29 per cent in April. The high positive annual growth in the index of industrial production (IIP) in March 2021 came on back of a contraction of (-)0.9 per cent and (-)3.4 per cent in January and February 2021 respectively, according to the data released by the National Statistical Office (NSO) on Wednesday. This turnaround was led by recovery in the mining, manufacturing and electricity sectors.
Barring fertiliser, all seven sectors - coal, crude oil, natural gas, refinery products, steel, cement, and electricity - had recorded negative growth in May.
She also took a swipe at the Bharatiya Janata Party over its defeat in the just-concluded Himachal Pradesh assembly elections, saying the ruling party's president could not hold on to his home state. "Who is the Pappu now?" she asked.
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.
Barring fertiliser, all seven sectors -- coal, crude oil, natural gas, refinery products, steel, cement and electricity -- recorded negative growth in July.
The statistics ministry has proposed the new base year for GDP and IIP as 2017-18 while for CPI it will be 2018.
This growth seen by the consumer goods was led mainly by the durables market, which rose 17.6%, the highest in 11 months
In October 2010, the index of industrial production had expanded by 11.29 per cent.
The record contraction in the growth rate of eight core sectors will have its impact on IIP.
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.
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.
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.
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.
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.
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.
Poor industrial production & lower agri output to further drag GDP growth rates.
Buoyed by the upbeat performance of the manufacturing sector, including metals, Centre for Monitoring Indian
The output of eight core sectors grew by 11.6 per cent in August, mainly due to an uptick in the production of cement, coal, and natural gas, official data showed on Thursday. The eight infrastructure sectors of coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity had contracted by 6.9 per cent in August 2020 due to the nationwide lockdown imposed to control the spread of COVID-19. The eight core industries comprise 40.27 per cent of the weight of items included in the Index of Industrial Production (IIP).
IIP growth rises to 9-month high of 4.3 pc in August
Mobile phone manufacture in India started only in 2006.
Industrial output rose to nearly three-year high of 6.4% in August.
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.
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.
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.
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.
Markets end marginally higher supported by IT shares as Infosys's Q3FY14 results boosted sentiment.
New Delhi says existing food stocks will be sufficient to contain any food price shock.
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.
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.
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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.
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.
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.
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.
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).
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.
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.
