Capital Goods Current Affairs
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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.
The Union Cabinet has approved signing of a Memorandum of Understanding (MoU) with Steinbeis GmbH Co. KG, Germany for technology transfer and resourcing in manufacturing, including sub-sectors of Capital Goods.
The MoU between India Steinbeis GmbH was signed in April, 2016 during the Industrial Exhibition Hannover Messe 2016 in Hannover, Germany.
Steinbeis GmbH is leading German organization for applied industrial research in Europe. It will act as a Technology Resource Partner for implementing identified projects in manufacturing.
The MoU envisages following field of cooperation
- Technology road mapping for specified Capital Goods sub-sectors.
- Cooperation in events on technology.
- Profiling of specific technologies.
- Upgrading existing technology institutes and setting up Greenfield institutes in India.
- Assessment of technology status of Capital Goods Cluster,
- Other technology related co-operation and collaboration.
The MoU is a framework instrument that seeks to facilitate industrial technology projects by Indian Capital Goods Sector. It will provide a platform to various public sector undertakings (PSUs) and Capital Goods Sector units to have easy access to expertise and capabilities of Steinbeis GmbH for identifying and plugging technology gaps.