Indian Industrial Growth on Improvement Curve
Finally there is some good news for the Indian manufacturing industry and country’s economy. According to the official industrial growth data issued by Government, the growth of eight core industries accelerated by 6.3 percent in the month of October on the back of better coal and power production. This is a very positive year on year growth showcased.
The Ministry of commerce and industry, Government of India stated in it’s official statement that the cumulative growth during the April-October period of the current fiscal was 4.3 percent.
The index of eight core industries with a combined weightage of 37.90 percent in the Index of Industrial Production (IIP) with base year 2004-05 stood at 165.9 in the month under review.
Electricity generation, which has a 10.32 percent highest weightage in the IIP, grew 13.2 percent in October over the same period last year.
Cement production declined by one percent, while steel production was up 2.3 percent. The coal sector grew 16.2 percent during October, while the fuel’s production in the April-October period this year grew at 8.5 percent over the corresponding period of previous year.
However, four out of the eight industries registered negative growth.
Crude oil output increased by one percent in the month under review, while natural gas production fell 4.2 percent, while fertilizers output was down a massive 7 percent. Fertilisers registered 1.1 percent growth during April-October of the current fiscal over the corresponding period of previous year.
Petroleum and refinery products grew 4.2 percent in October 2014 over October 2013.The IIP, the barometer for measuring industrial output, had increased by a marginal 1.9 percent in September.