Business News
IIP growth hits 17-month high of 8.4% in November on robust manufacturing, capital goods sectors
New Delhi: Industrial production growth zoomed to a 17-month high of 8.4 percent in November 2017 on the back of robust performance of manufacturing and capital goods sectors. The factory output, measured in terms of Index of Industrial Production (IIP), grew 5.1 percent in November 2016, as per data released today by the Central Statistics Office (CSO).
The previous high was recorded at 8.9 percent in June, 2016. Meanwhile, the IIP growth for October 2017 has been revised downwards to 2 percent from the provisional estimates of 2.2 released last month. Manufacturing sector, which constitutes 77.63 percent of the IIP, recorded an impressive growth of 10.2 percent in November as compared to 4 per cent a year ago.
The industry group ‘Manufacture of pharmaceuticals, medicinal chemical and botanical products’ has shown the highest positive growth of 39.5 percent, followed by 29.1 percent in computer, electronic and optical products and 22.6 percent in ‘manufacture of other transport equipment’.
Capital goods output, which is a barometer of investment, grew by 9.4 percent in November as against 5.3 percent a year ago. Consumer non-durables, which are mainly fast moving consumer goods (FMCG), showed an output growth of 23.1 percent as against 3.3 percent in November 2016.
However, the mining sector production growth slowed to 1.1 percent from 8.1 percent a year ago. Electricity generation growth too slowed to 3.9 percent in November from 9.5 percent in the corresponding month a year ago. Production growth of consumer durables, mainly white goods like TVs, refrigerators and washing machines, also slowed to 2.5 percent from 6.8 percent.
