Economy Current Affairs
Category Wise PDF Compilations available at This Link
According to data released by Central Statistics Office (CSO), factory output measured in terms of Index of Industrial Production (IIP) grew 8.1% in October 2018 as against 4.5% in September 2018. The growth was aided by favourable base effect and robust output in all key sectors—manufacturing, electricity and mining. IIP is the closest approximation for measuring economic activity in the country’s business landscape.
Breakaway of October 2018 IIP
Sector wise Performance: Manufacturing sector output grew 7.9% in October 2018 from 4.6% in September 2018 and 2% a year ago. Electricity production growth grew to 10.8% in October from 8.6% in September 2018 and 3.2% a year ago. Mining activity grew to 7% in October 2018 from 0.2% in September 2018 from de-growth of (-) 0.2% last year.
Use-based Performance: Primary goods grew by 6.0%, intermediate goods by 1.8% and infrastructure/construction goods by 8.7% as compared to growth in October 2017. Consumer durables output also grew 17.6%, from 5.2% in September 2018, indicating higher production during the festive season. Consumer non-durables grew 7.9% in October 2018 as compared to 6.1% in September 2018.
Index of Industrial Production (IIP)
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 (MoSPI). Its base year is 2011-12.
It comprises 407 individual items. Sector wise, the items included falls into 3 categories viz. Manufacturing (405 items), Mining (1 items) & Electricity (1 item). he weights of the three sectors are 77.63%, 14.37%, 7.9% respectively. The combined weightage of 8 core Industries in IIP is 40.27%.
In use wise composition 407 individual items are divided into basic goods, capital goods, intermediate goods and consumer goods. Further, consumer goods is divided into consumer durables and consumer non-durables. In this case maximum weight is of basic goods, followed by Consumer Goods, followed by Intermediate and Capital Goods.
Asian Development Bank (ADB) in its Outlook Supplement has retained India’s growth forecast at 7.3% for current fiscal (2018-19) and 7.6% in following financial year (2019-20). It held that India is maintaining growth momentum on rebounding exports and higher industrial and agricultural output.
India saw GDP growth moderate to 7.1% in Q2 of FY2018 (ending March 31, 2019) from 8.2%in Q1. The slowdown came mainly from food prices, rising oil prices delivering negative shock in terms of trade, lower rural consumption, and rising costs for raw materials. But growth forecasts of 7.3% for 2018-19 and 7.6% for 2019-20 are retained from update despite some downside risks.
Asian Development Bank (ADB)
ADB is a regional development bank based out of Asia. It aims to promote social and economic development in Asia by achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. It was established in December 1966. It is headquartered at Ortigas Centre in Manila, Philippines. It has total 67 members, of which 48 are from within Asia and the Pacific and 19 outside.