Capital Goods Current Affairs - 2020

RBI launches OBICUS

On April 16, 2020, the Reserve Bank of India launched OBICUS. This is the 49th round of survey by the apex bank for the period January to March.

Highlights

The Capacity Utilisation declined to 68.6% from 69.1%.

What is OBICUS survey?

OBICUS is Order Books, Inventories and Capacity Utilization Survey (OBICUS). The survey provides an insight into the demands of the Indian manufacturing sector. The survey is conducted quarterly (4 times a year). It is being conducted since 2008.

Features of the Survey

The survey covers 2,500 companies both in public and private sector. The survey also provides ratio of total inventories to sales. Also, the survey provides ratio of raw materials to finished goods. It helps to measure economic activity in the country.

Data Collected in the Survey

The data collected in the survey includes quantitative data, pending orders, work in progress, backlog of orders and finished goods. The data is provided item-wise.

Industrial production growth slows to 1.7% in January 2019

The Central Statistics Office (CSO) has released the data for the Index of Industrial Production (IIP) for the month of January. The IIP data shows that:

  • Industrial output growth stood at 1.7 per cent in January against the 2.6% growth recorded in December 2018.
  • The CSO has revised the industrial production growth for December 2018 has been revised upwards from 2.4% to 2.6%.
  • The growth of output of manufacturing sector moderated to 1.3% and the electricity generation rose a mere 0.8% in January 2019.
  • The mining output rebounded 3.9% in January 2019, snapping 1% decline in December 2018.
  • Capital goods output declined 3.2% in January 2019 and the output of intermediate goods also fell by 3.0% in January 2019.
  • The output of primary goods increased by 1.4%, while that of infrastructure/ construction goods moved up 7.9% in January 2019 when compared to January 2018.
  • The output of consumer durables moved up 1.8%, while that of consumer non-durable durables also rose 3.8% in January 2019 when compared to January 2018.
  • Eleven out of the twenty-three industry groups in the manufacturing sector have shown positive growth during the month of January 2019 as compared to January 2018.
  • The cumulative industrial production increased by 4% in April-January FY2019 compared with 4.1% growth in April-January FY2018.
  • The manufacturing sector growth has improved to 4.4% in April-January FY2019 from 4.2% growth in the corresponding period last year.
  • The electricity generation output growth also improved to 5.8%, while mining output growth accelerated to 5.3% in April-January FY2019.

Index of Industrial Production

Index of Industrial Production (IIP) is a composite indicator that measures the changes in the volume of production of a basket of industrial products during a given period with respect to the volume of production in a chosen base period. The base year for the IIP is 2011-12.