IIP in January jumps to 7.5% on manufacturing, capital and consumer goods push, CSO data reveals
Index of Industrial Production (IIP) had grown at 7.1 percent in December 2017, according to the data released by the Central Statistics Office (CSO) on Monday
New Delhi: Industrial production grow at a high rate of 7.5 percent in January 2018 against 3.5 percent in the year-ago month on the back of good show by manufacturing coupled with higher offtake of consumer and capital goods. The Index of Industrial Production (IIP) had grown at 7.1 percent in December 2017, according to the data released by the Central Statistics Office (CSO) on Monday.
The IIP growth in January this year was mainly on account of uptick in manufacturing sector which constitutes 77.63 percent of the index. It grew by 8.7 percent during the month as compared to 2.5 percent in January 2017, showing signs of recovery in the economy.
Capital goods, a barometer of investments, showed a sharp increase in output by 14.6 percent in January, 2018 as against a decline of 0.6 percent year ago.
Consumer non-durable goods, which are mainly fast moving consumer goods, too showed an increase of 10.5 percent as against a growth of 9.6 percent. Consumer durable goods recorded a growth rate of 8 percent in January 2018 against a contraction of 2 percent a year ago.
However, the mining sector saw a flat growth of 0.1 percent compared to 8.6 percent a year ago.
As per use-based classification, the growth rates in January 2018 over January 2017 are 5.8 percent in primary goods, 4.9 percent in intermediate goods and 6.8 percent in Infrastructure/Construction Goods.
In terms of industries, 16 out of 23 industry groups in the manufacturing sector showed positive growth during January, 2018. IIP grew at 4.1 percent in April-January this fiscal as compared to 5 percent in same period in previous financial year.
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Industrial production, or factory output, is the closest approximation for measuring the economic activity of the country's business landscape.
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