Press Trust of India
New Delhi, Sept 11: Industrial production expanded at a higher rate of 4.2 per cent in July this year compared to the same month last year as manufacturing activity and offtake of capital goods improved. The industrial production had grown by 0.9 per cent in July last year. Industrial growth, measured in terms of the Index of Industrial Production (IIP), was at 3.5 per cent in April-July period against 3.6 per cent in the year-ago period, the data released by the Central Statistics Office (CSO) Friday showed.
Moreover, the IIP growth for June has been revised upwards to 4.36 per cent from provisional estimate of 3.8 per cent released last month. The manufacturing sector, which constitutes over 75 per cent of the index, grew by 4.7 per cent in July 2015 against a contraction of 0.3 per cent in the same month last year. The output of capital goods, a barometer of investment, grew at an impressive rate of 10.6 per cent against a contraction of 3 per cent in the same month last year.
The mining sector growth was at 1.3 per cent in July against 0.1 per cent in the same month last fiscal. Power generation growth slowed to 3.5 per cent in July compared to 11.4 per cent in the same month a year ago. The consumer durables goods output expanded at 11.4 per cent in July compared to a contraction of 20.4 per cent in the month a year ago. Overall consumer goods output rose by 1.3 per cent in July compared to a contraction of 5.9 per cent in the month a year ago. In terms of industries, 12 out of 22 groups in the manufacturing sector showed positive growth in July.
CAD narrows to 1.2pc of GDP in Q1
The current account deficit narrowed to 1.2 per cent of GDP at $6.2 billion in the June quarter on contraction in trade deficit and higher earnings from services exports, the Reserve Bank said Friday. The June quarter CAD figure is lower than $7.8 billion or 1.6 per cent of GDP, in the year-ago period, but higher than 0.2 per cent for the March quarter. “This improvement is mainly on account of the merchandise trade deficit of $34.2 billion during the first quarter which contracted on year-on-year basis due to larger absolute decline in merchandise imports relative to merchandise exports,” RBI said in the quarterly balance of payments data. Reacting to the improvement in CAD, Economic Affairs Secretary Shaktikanta Das tweeted, “The first quarter CAD at 1.2 per cent is better than last year. Have to remain watchful.” Rating agency Icra’s senior economist Aditi Nayar said the improvement in CAD will bolster the rupee if there is a drop in sentiments related to emerging market currencies once the US Federal Reserve hikes rates.
