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Industrial growth in February has reached a 7 -month low of 2.9%. This industrial production was at 5% in January last month. Industrial growth has decreased due to manufacturing and poor performance of the mining sector. Manufacturing contributes more than three-fourths to the IIP.
In January, the output of India’s manufacturing sector has come down by 2.9%. This was 5.8% in the previous month. At the same time, the production of the mining sector saw a decline of 2.8% in February, which is at a 4 -month low. This growth was 4.4% in January. The electricity sector grew 3.6% in February. It has increased by 1.2% compared to the previous month.
Sector Wise Industrial Growth in January compared to December:
- Manufacturing: 2.9% in February against 5.5% in January
- Mining: 1.6% in February against 4.4% in January
- Electricity: 3.6% in February against 2.4% in January
- Primary Goods: 2.8% in February against 5.5% in January
- Capital Goods: 9% in February against 10.3% in January
- Intermediate Goods: 1.4% in February against 5.2% in January
- Infrastructure Goods: 6.4% in February against 7% in January
- Consumer Durable Goods: 3.9% in February against 7.2% in January
- Consumer non -durable goods: In January against 0.2% in January – 1.8% in February
What is the Index of Industrial Production (IIP)?
As the name itself is clear, the production figures of industries are called industrial production. It includes three large sectors. The first is- manufacturing, ie what is made in industries, such as vehicles, cloth, steel, cement.
The second is- mining, which gets coal and minerals. The third is- utilitis means things used for common people. Such as roads, dams and bridges. All these productions together are called industrial production.
How is it measured?
IIP is a unit to measure industrial production- Index of Industrial Production. For this, the base year of 2011-12 has been fixed. That is, as compared to 2011-12, the faster or decrease in the production of industries is called IIP.
77.63% of this entire IIP comes from the manufacturing sector. Apart from this, electricity, steel, refinery, crude oil, coal, cement, natural gas and fertilizer- the direct impact of the production of these eight big industries is visible on the IIP.
