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Industrial growth slips to 4.5% in September
Why is it in the news ?
- According to the official data released, growth in industrial activity as measured by the Index of Industrial Production(IIP) slowed marginally in September to 4.5%.
- The growth slipped due to slowing growth in the manufacturing and capital goods sectors.
More in the news
- Growth in the IIP slowed from 4.67% in August.
- Within the index, growth in the manufacturing sector slowed to 4.62% in September from 5.08% in August.
- Activity in the mining and quarrying sector witnessed an acceleration, growing at 0.21% in September compared with a contraction of 0.54% in the previous month.
- Growth in the electricity sector touched 8.24% in September, up from 7.59% in the previous month.
- The capital goods sector, however, saw growth slowing to 5.76% from 9.34% over the same period.
Concept
- 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, Indian Express.