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Factory growth slows to 4.3%
Why in the news ?
- The Industrial production slowed t0 4.3% in August, due in large part to a drastic deceleration in the manufacturing, mining, and consumer durables sectors.
More in the news
- According to the data released by the Central Statistics Office, the index of industrial production (IIP) fell from 6.5% in July to 4.3% in August.
- The volatility in the IIP growth rate indicates that industrial recovery remains uneven and fragile ahead of the festive season.
- The Reserve Bank of India’s (RBI’s) latest business expectations index, however, shows industrial activity improved in the July quarter.
IIP
- The Index of Industrial Production (IIP) is the number denoting the condition of industrial production during a certain period.
- IIP shows the status of industrial activity, you can find out if the industrial activity has increased, decreased or remained same.
- It is important for the IIP to reflect true industrial trends, which in turn has an impact on the policy decision-making.
- These figures are calculated in reference to the base year. Currently the base year is 2011-12.
- Index of Industrial Production (IIP) is released by the Central Statistics Office (CSO) of the Ministry of Statistics and Programme Implementation.
- It dose not consider measuring of informal sector activity . Same with the PMI
Source
The Hindu.