Sunday May 27, 2018
Home Business India’s...

India’s factory output falls, retail inflation inches up

0
//
66
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

Diesel Exhaust Converted Into Ink by Indian Innovators To Battle Air Pollution

Supervised by young engineers, workers at the start-up company Chakr Innovation in New Delhi cut and weld sheets of metal to make devices that will capture black plumes of smoke from diesel generators and convert it into ink.

0
//
13
representational image. VOA

Supervised by young engineers, workers at the start-up company Chakr Innovation in New Delhi cut and weld sheets of metal to make devices that will capture black plumes of smoke from diesel generators and convert it into ink.

In a cabin, young engineers pore over drawings and hunch over computers as they explore more applications of the technology that they hope will aid progress in cleaning up the Indian capital’s toxic air – among the world’s dirtiest.

While the millions of cars that ply Delhi’s streets are usually blamed for the city’s deadly air pollution, another big culprit is the massive diesel generators used by industries and buildings to light up homes and offices during outages when power from the grid switches off – a frequent occurrence in summer. Installed in backyards and basements, they stay away from the public eye.

“Although vehicular emissions are the show stoppers, they are the ones which get the media attention, the silent polluters are the diesel generators,” says Arpit Dhupar, one of the three engineers who co-founded the start up.

The idea that this polluting smoke needs attention struck Dhupar three years ago as he sipped a glass of sugarcane juice at a roadside vendor and saw a wall blackened with the fumes of a diesel generator he was using.

It jolted him into joining with two others who co-founded the start-up to find a solution. Dhupar had experienced first hand the deadly impact of this pollution as he developed respiratory problems growing up in Delhi.

An Indian girls holds a banner during a protest against air pollution in New Delhi, India, Nov. 6, 2016.
An Indian girls holds a banner during a protest against air pollution in New Delhi, India, Nov. 6, 2016.

A new business

As the city’s dirty air becomes a serious health hazard for many citizens, it has turned into both a calling and a business opportunity for entrepreneurs looking at ways to improve air quality.

According to estimates, vehicles contribute 22 percent of the deadly PM 2.5 emissions in Delhi, while the share of diesel generators is about 15 percent. These emissions settle deep into the lungs, causing a host of respiratory problems.

After over two years of research and development, Chakr has begun selling devices to tap the diesel exhaust. They have been installed in 50 places, include public sector and private companies.

The technology involves cooling the exhaust in a “heat exchanger” where the tiny soot particles come together. These are then funneled into another chamber that captures 70 to 90 percent of the particulate matter. The carbon is isolated and converted into ink.

Among their first clients was one of the city’s top law firms, Jyoti Sagar Associates, which is housed in a building in Delhi’s business hub Gurgaon.

Making a contribution to minimizing the carbon footprint is a subject that is close to Sagar’s heart – his 32-year-old daughter has long suffered from the harmful effects of Delhi’s toxic air.

Motorists drive surrounded by smog, in New Delhi, India, Nov. 8, 2017.
Motorists drive surrounded by smog, in New Delhi, India, Nov. 8, 2017.

“This appealed to us straightaway, the technology is very impactful but is beautifully simple,” says Sagar. Since it could be retrofitted, it did not disrupt the day-to-day activities at the buzzing office. “Let’s be responsible. Let’s at least not leave behind a larger footprint of carbon. And if we can afford to control it, why not, it’s good for all,” he says.

At Chakr Innovation, cups, diaries and paper bags printed with the ink made from the exhaust serve as constant reminders of the amount of carbon emissions that would have escaped into the atmosphere.

There has been a lot of focus on improving Delhi’s air by reducing vehicular pollution and making more stringent norms for manufacturers, but the same has not happened for diesel generators. Although there are efforts to penalize businesses that dirty the atmosphere, this often prompts them to find ways to get around the norms.

Also Read: Exposure to Traffic-Related Pollution Poses Threat of Asthma in Kids

Tushar Mathur who joined the start up after working for ten years in the corporate sector feels converting smoke into ink is a viable solution. “Here is a technology which is completely sustainable, a win-win between businesses and environment,” says Mathur. (VOA)