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Industrial growth declines to 20-month
Why is it in the news
- According to the official data released, Industrial output growth slowed to a 20-month low of 0.1% in February, mainly due to contraction in the manufacturing sector.
More in the news
- Growth in the Index of Industrial Production (IIP) slowed in February from 1.44% in January.
- Along with manufacturing, other sector that saw slowdown are mining, capital goods and infrastructure.
- Within the Index, the mining and quarrying sector saw growth slowing to 2% from 3.92% over the same period.
- The manufacturing sector saw a contraction of 0.31% in February from 1.05% in January. It constitutes 77.63% of the IIP.
- Capital goods output declined by 8.8 per cent in the month under review as against 16.6 per cent growth in February 2018.
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.