Factory output enters positive zone after three months

Tags: News
Showing a ray of hope, industrial output entered positive territory and recorded a 0.1 per cent growth in January after contracting for three months in a row.

The marginal improvement in the index of industrial production (IIP) was mainly on account of higher power generation and mining sector output, while manufacturing declined.

However, industrial output during the 10-month period from April to January of this financial year was flat compared with an over 1 per cent growth in the same period of 2012-13.

"IIP data is in line with expectations. There is need for considerable pick up in February-March manufacturing activities," Prime Minister's Economic Advisory Council Chairman C Rangarajan said.

In January 2013, factory output measured in terms of IIP grew 2.5 per cent.

The contraction in IIP in December was revised to 0.16 per cent from the provisional estimate of a 0.6 per cent dip.

Factory output started to decline in October with the IIP contracting 1.6 per cent and continued till December, as per Central Statistics Office (CSO) data released today.

Power generation posted a growth of 6.5 per cent in January, compared with 6.4 per cent in the same month of 2013. Expansion in power generation was 5.7 per cent in April-January from 4.7 per cent a year ago.

The mining sector, with a weight of about 14 per cent in IIP, grew 0.7 per cent in January as against a dip of 1.8 per cent in the same month in 2013. During April-January, mining output shrank 1.5 per cent as against a dip of 1.8 per cent a year earlier.

The manufacturing sector, which constitutes over 75 per cent of the index, declined 0.7 per cent in January as against growth of 2.7 per cent in the year-ago period.

During April-January, the sector's output contracted 0.4 per cent compared to a growth of 0.8 per cent in same period last fiscal.

EDITORIAL OF THE DAY

  • Kejriwal’s first year in office has shown he is a man tough to ignore

    On Sunday, Arvind Kejriwal’s AAP government spent exactly 365 days in office and despite the claims and counter-claims that are going to be debated

FC NEWSLETTER

Stay informed on our latest news!

TODAY'S COLUMNS

Urs Schoettli

The importance of Indonesia

A few weeks ago, the wo­rld was shocked by a ...

Purnendu Ghosh

Making sense of information

We need information to maintain connectivity with our personal an­d ...

Shona Adhikari

A tale of three varied but vivid retrospectives

This week’s art column focuses on the work of three ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture