INSUBCONTINENT EXCLUSIVE:
After contracting for three consecutive months, Index of Industrial Production (IIP) grew at 1.8 per cent in November on the back of
improving manufacturing sector
The IIP growth in November 2018 was at 0.2 per cent.
According to the National Statistical Office (NSO) data, the growth in the
manufacturing sector was 2.7 per cent as against a contraction of 0.7 per cent in the same month last year, PTI reported.
The IIP growth
during April-November came in at 0.6 per cent, down from 5 per cent in the same period of 2018-19.
As per the NSO data, 13 out of the 23
industry groups in the manufacturing sector showed positive growth during November 2019 as compared to the corresponding month of the
economy as IIP turned positive after three months of contraction
From the consumption point of view, it is welcoming that the consumer non-durables has turned positive
However, consumer durables are still in the negative territory, contracting for the last six months.
Sunil Kumar Sinha, Principal Economist,
India RatingsWe believe turnaround in factory output growth from degrowth to growth though is a welcome sign, it still cannot be interpreted
as some kind of a green shoot on the industrial front as a number of key use-based sectors such as consumer durables, capital goods, basic
goods and infrastructure goods are still showing degrowth
Unless and until the majority of the use-based sectors show positive growth on a sustained basis, it would be difficult to believe that
Indian industrial sector has come out of the woods.
Rumki Majumdar, Economist, Deloitte IndiaThe latest IIP numbers come as a relief to the
market and policymakers, as the activity in the industry sector showed some traction
On a month-on-month basis, growth has been broad-based with capital and durable goods showing considerable improvement
Relative to the previous year, growth in manufacturing has been impressive, although it could not build on the past month's growth
continue to benefit until the end of the financial year
On these lines, manufacturing, which was contracting continuously for the previous three months has received a fillip from the contraction
in November 2018 (base year)
Segments without such benefit are maintaining their negative outlook, baring consumer non-durables (use based).
