Capital Goods Current Affairs - 2019
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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.
According to data released by Central Statistics Office (CSO), factory output measured in terms of Index of Industrial Production (IIP) has grown nine-month high to 4.3% in August 2017. This was mainly due to a robust performance of the mining and power sectors.
The manufacturing sector output grew 3.1% in August 2017, mining sector output surged 9.4% and electricity generation increased 8.3%. Production of capital good rose 5.4% in August 2017. Consumer durables output increased 1.6% and consumer non-durables output rose 6.9% in August 2017.
Index of Industrial Production (IIP)
The IIP is composite indicator that measures short-term changes in volume of production of basket of industrial products during given period with respect to chosen base period. It is compiled and published monthly by Central Statistical Organization (CSO), Ministry of Statistics and Programme Implementation.
The CSO had revised base year of IIP from 2004-05 to 2011-12 in May 2017 to capture structural changes in economy and improve quality and representativeness of indices. The revised IIP (2011-12) reflects changes in industrial sector and also aligns it with base year of other macroeconomic indicators like Wholesale Price Index (WPI) and Gross Domestic Product (GDP).
The IIP covers 407 item groups. Sector wise these items falls into 3 categories viz. Manufacturing (405 items), Mining (1 items) & Electricity (1 item). The weights of three sectors are 77.63%, 14.37%, 7.9% respectively. The revised eight core Industries have combined weightage of 40.27% in IIP.