Tuesday October 24, 2017
Home Business India’s...

India’s factory output falls, retail inflation inches up

0
57
INDIA-ECONOMY

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)

Next Story

Asia Cup : India Emerge Champions for third time, Beat Malaysia in Asia Cup Hockey Championship

India emerged victorious for the third time

0
19
asia cup
(representational Image) India vs Malaysia Hockey Match wikimedia

Dhaka, October 22, 2017 : India overcame Malaysia 2-1 in the final on Sunday to win the Asia Cup hockey championship for the third time.

Ramandeep Singh (3rd minute) and Lalit Upadhyay (29th) scored for India. Shahril Saabah (50th minute) scored the reducer for Malaysia. (IANS)

Next Story

India Demands Data on UN Staff Misconduct, Use of Immunity

0
5
United nations
India has demanded the secretariat disclose information about misconduct by UN staff. Flickr

United Nations, Oct 7: In an attempt to break the wall of silence around the crimes and UN staff misconduct and those on its assignments, India has demanded the secretariat disclose information about such cases and the immunity invoked against prosecutions.

Yedla Umasankar, the legal advisor in India’s UN Mission, touched a raw nerve here by criticising the UN on Friday for not vigorously following up allegations of serious wrongdoing by its employees who enjoy the equivalent of diplomatic immunity, a prized possession of its staff.

“It appears that the UN system itself may be reluctant to waive immunity even for serious misconduct carried out by its personnel while serving on its missions, so that such cases can be prosecuted by the host governments,” he told the General Assembly’s committee on legal affairs.

“Even a few of such instances or allegations of crimes committed by UN personnel is highly damaging for the image and credibility of the United Nations system and its work around the world,” he added.

His statement also touched on the practice of some countries that protect their wrongdoers at the UN.

Umasankar demanded that secretariat disclose how many cases of serious misconduct by UN personnel were registered and the number of cases where the UN refused to waive immunity to allow their prosecution.

He also wanted to know in how many cases the host country wanted the immunity waived so it can prosecute those accused; the number of times the UN asked the host country or the country that sent them to prosecute them; how many times it consulted countries before waiver of the immunity of their personnel and how many of them refused UN’s request to waive their citizens’ immunity.

The information he wanted does not cover the diplomats sent by member countries to represent them at UN bodies and enjoy diplomatic immunity with the nations hosting the UN facilities.

After scores of serious allegations of sexual misconduct by peacekeepers, especially exploitation of children, the UN vowed to uphold a policy of zero tolerance and began publishing data on such cases in peacekeeping operations including how they were dealt with.

Starting with the year 2015, it began identifying the nationalities of those accused.

However, it has not made public a roster detailing all the allegations and proven cases of serious misconduct across the entire UN.

While the focus has been on sexual exploitation and abuse reported on peacekeeping operations, Umasankar said that “at a broader level, the issue of accountability has remained elusive in some cases”.

He attributed it to “the complexities of legal aspects relating to sovereignty and jurisdiction”, the immunity or privileges that may be necessary for UN operations, and the capability or willingness of countries to investigate and prosecute the accused.

He noted that the UN itself cannot make criminal prosecutions.

While Indian laws has provisions for dealing with crimes committed abroad by its citizens, not all countries have them, he said.

Those countries should be encouraged and helped to implement such measures, he added. (IANS)

Next Story

Indo-Pak Peace Talks Futile Unless Islamabad Sheds Links with Terrorism, says Study

A Study by a U.S. think tank calls India and Pakistan talks futile, until Pakistan changes its approach.

0
54
India and Pakistan
India and Pakistan. Wikimedia.

A Top United States of America (U.S.) think tank, Carnegie Endowment for International Peace called the relations between India and Pakistan futile, unless Islamabad changes its approach and sheds its links with Jihadi terrorism.

A report “Are India and Pakistan Peace Talks Worth a Damn”, authored by Ashley J Tellis stated that such a move supported by foreign countries would be counterproductive and misguided.

The report suggests that International community’s call for the India and Pakistan talks don’t recognize that the tension between the two countries is not actually due to the sharp differences between them, but due to the long rooted ideological, territorial and power-political hatred. The report states that these antagonisms are fueled by Pakistani army’s desire to subvert India’s powerful global position.

Tellis writes that Pakistan’s hatred is driven by its aim to be considered and treated equal to India, despite the vast differences in their achievements and capabilities.

Also ReadMilitant Groups in Pakistan Emerge as Political Parties : Can Violent Extremism and Politics Co-exist? 

New Delhi, however, has kept their stance clear and mentioned that India and Pakistan talks cannot be conducted, until, the latter stops supporting terrorism, and the people conducting destructive activities in India.

The report further suggests that Pakistan sees India as a genuine threat and continuously uses Jihadi terrorism as a source to weaken India. The report extends its support to India’s position and asks other international powers, including the U.S., to extend their support to New Delhi.

Earlier in September, Union External Affairs Minister Sushma Swaraj in the United Nations General Assembly (UNGA) slammed Pakistan for its continuous terror activities. She attacked the country by saying that India has produced engineers, doctors, and scholars; Pakistan has produced terrorists.

Sushma Swaraj further said that when India is being recognised in the world for its IT and achievements in the space, Pakistan is producing Terrorist Organisations like Lashkar-e-Taiba. She said that Pakistan is the world’s greatest exporter of havoc, death and inhumanity.

-by Megha Acharya  of NewsGram. Megha can be reached at @ImMeghaacharya.