Wednesday January 24, 2018
Home Business India’s...

India’s factory output falls, retail inflation inches up

0
//
61
INDIA-ECONOMY
Republish
Reprint

New Delhi: Hopes of a revival in India’s manufacturing activity after a sharp spike in October were belied, with factory output actually registering a fall in the month after at a four-year low, according to official figures released on Tuesday.

To deal a further blow, the annual retail inflation also crept up to 5.61 percent in December.

According to data on index of industrial production (IIP) released by the Central Statistics Office, the country’s factory output declined by 3.19 percent in November, due mainly to a (-)4.4 percent drop in manufacturing activity.

The cumulative growth of the country’s factory output was also pulled down to 3.9 percent in the first eight months of the current fiscal year from 4.8 percent for the first seven months.

Between the other broader indices, electricity production was up marginally by 0.7 percent, while that for mining was at 2.3 percent.

The cumulative growth of the two indices for the first eight months of the current fiscal were 4.6 percent and 2.1 percent, respectively. Manufacturing’s cumulative growth stood at 3.9 percent.

In addition, the data revealed that among the six use-based classifications of the index, the output of consumer durables segment expanded by 12.5 percent in November. The consumer goods segment accelerated by 1.3 percent.

However, capital goods segment, which is a key indicator of economic activity plunged by (-)24.4 percent. The output of consumer nondurables was lower by (-)4.7 percent.

The basic and intermediate goods’ output inched down by (-)0.7 percent each.

Overall, 17 out of the 22 industry groups in the manufacturing sector have shown negative growth during the month under review.

Segment-wise, growth was witnessed in ‘gems and jewellery’ (253.7 percent), ‘sugar machinery’ (78 percent), ‘lubricating oil’ (66.5 percent), ‘wood furniture’ (46.9 percent), ‘PVC pipes and tubes’ (31.4 percent) and ‘sugar’ (25.7 percent).

Moreover, high negative growth was reported in the ‘cable, rubber insulated’ (- 87.1 percent), ‘polythene bags’ (- 58 percent), ‘tractors’ (- 42.3 percent), ‘conductor, aluminium’ (- 36.8 percent), ‘rice’ (- 27.1 percent) and ‘three-wheelers’ (- 23.7 percent).

In the case of prices, as pulses continued to remain dear, the country’s annual retail inflation moved up further to 5.61 percent in December from 5.41 percent during the month before, the official data showed.

According to the numbers on the consumer price index, the annual rate of inflation, December-on-December, was distinctly higher in rural areas at 6.32 percent against 4.73 percent in the cities and towns.

The retail food inflation during the month under review was 6.4 percent for India as a whole, as against 6.07 percent in the month before. In the rural and urban areas, the annual inflation rates for food items were 6.41 percent and 6.31 percent, respectively.

The official data further showed that prices of pulses were up 45.92 percent over those prevailing during the past year. The cost of spices and vegetables edged up by 10.83 percent and 4.63 percent on a year-on-year (YoY) basis.

Prices of meat products were up by 6.57 percent. Other protein-based food items like milk and milk based products became expensive by 3.94 percent. Eggs’ cost rose by 0.97 percent.

Instead, in a worsening of the crisis for millers, retail inflation in sugar fell by (-)6.16 percent.

Similarly, the cost of other categories under the general index rose during the month under review. The inflation percentage in December was higher in “clothing and footwear” at over 5 percent each, and “fuel and light” at 5.45 percent. Housing was costlier by 5.06 percent.

Among the states, the maximum inflation of 9.28 percent was reported from Andhra Pradesh, followed by 7.44 percent for Odisha, 7.21 percent for Karnataka, 6.81 percent for Chhattisgarh and 6.69 percent for Tamil Nadu.

The inflation levels for the Delhi region stood at 4.53 percent.

The latest macroeconomic data provoked the concern of industry chambers.

“The steep fall in the manufacturing sector growth is because both the export and domestic demand, especially the rural demand have slowed down. It also underlines the need for more measures to stimulate investments and deeper structural reforms” said Harshavardhan Neotia, president of FICCI, in a statement here.

 

The slowdown in export may impact the growth of manufacturing,

 

“The severe downfall in IIP numbers to -3.2 percent in November 2015 is a major worrying factor as the industry was expected to grow in a good growth trajectory,” said Mahesh Gupta, president, Ph.D. Chamber of Commerce and Industry, in a statement here.

“Slowdown in domestic demand is a major factor and government must take demand-boosting measures to help industry growth to revive in the coming times,” he added.

(Inputs from IANS)

(Photo Courtesy:www.firstpost.com)

Click here for reuse options!
Copyright 2016 NewsGram

Next Story

India China’s Fight Over the Doklam Plateau Explained

Doklam or Donglang, is a disputed area between China and Bhutan located near their tri-junction with India

0
//
16
picture from- indiaopines.com

By Ruchika Verma

  • India and China have an old history of disputes
  • This time, the dispute is regarding the Dokplam Plateau
  • The area is of strategic importance for both the nations

Disputes between India and China are not at all uncommon. The rivalry between the two nations is famous. There have been several disputes between the two on the India-China border in past, and there seems to be no stopping for these disputes in the present or future, for that matter.

India and China have a n old history of repeated disputes. zeenews.india.com
India and China have an old history of repeated disputes. zeenews.india.com

In June 2017, the world witnessed yet another dispute arising between India and China. This time the dispute was about China building a road extending to Doklam Plateau, which both nations have been fighting over for years now.

Also Read: China is likely to get involved if India disrupts $46 billion China-Pakistan Economic Corridor

History of the dispute 

Doklam or Donglang (in Chinese), is a disputed area between China and Bhutan located near their tri-junction with India. India doesn’t directly claim the area but supports Bhutan’s claims on it.

India fits into the picture, as this plateau is an important area for India. Not only is Bhutan one of the biggest allies of India; China gaining access over the Doklam Plateau will also endanger India’s borders, making them vulnerable to attacks.

Dopkam plateau is an important area near India, China and Bhutan's borders.
Dopkam plateau is an important area near India, China and Bhutan’s borders.

Apart from the hostile history of the two nations, the Doklam Plateau is also important for India to maintain its control over a land corridor that connects to its remote northeastern States. China building a road through Doklam surely threatens that control.

A complete timeline of what happened in the recent Doklam Standoff 

On 16 June 2017, Chinese troops with construction vehicles and excavators began extending an existing road southward on the Doklam plateau, near India’s border. It was Bhutan which raised the alarm for India.

On 18 June 2017, India responded by sending around 270 Indian troops, with weapons and two bulldozers to evict the Chinese troops from Doklam.

On 29 June 2017, Bhutan protested against the construction of a road in the disputed territory.  According to the Bhutanese government, China attempted to extend a road in an area which is shared both Bhutan and India, along with China.

Between 30 June 2017 and 5 July 2017, China released multiple statements justifying their claim over the Doklam plateau. They cited reasons as to why the Doklam standoff wasn’t really needed. And how China has not intruded into India’s territory to incite the standoff.

On 19th July 2017, China asked India again to withdraw its troops from the Doklam. On 24th July 2017,  Chinese Foreign Minister Wang Yi, in his statement, asked India to withdraw and behave themselves to maintain peace.

India and China seem to never agree when it comes to their borders. BBC
India and China seem to never agree when it comes to their borders. BBC

Also Read: Why India Must Counter China’s High-Altitude Land Grab?

What followed till 16th August 2017 was China constantly alleging India of trying to create trouble. They accused India of trying to disturb the peace and not withdrawing the troops, even after repeated reminders. They also accused India of bullying.

India, however, kept quiet during the whole fiasco, only releasing a statement regarding their stand and position at the Doklam standoff.

On 28 August 2017, India and China finally announced that they had agreed to pull their troops back from the Doklam standoff. The withdrawal was completed on that very day.

On 7 September 2017, many media reports claimed that both nation’s troops have not left the site completely. They were still patrolling the area, simply having moved 150 meters away from their previous position.

On 9 October 2017, China announced that it is ready to maintain peace with India at the frontiers. India reacted in affirmative, the peace was established when Indian Defence Minister, Nirmala Sitharaman’s visited Nathu La.

The issue between the two nations may rise again. Pixabay
The issue between the two nations may rise again. Pixabay

The Doklam issue, for now, is resolved. However, given the history of disputes between India and China, it won’t be a surprise if the issue resurfaces again in near future.