Manufacturing Current Affairs - 2019
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The Index of Industrial Production for the month of November has been released by the Central Statistical Office, under the Ministry of Statistics and Programme Implementation.
The Index of Industrial Production (IIP) provides details about the growth of various sectors in an economy such as mineral mining, electricity and manufacturing. IIP is a composite indicator that measures the short-term changes in the volume of production of a basket of industrial products during a given period with respect to that in a chosen base period.
Key Facts about the IIP, November 2018
The IIP report of CSO makes the following observations:
- Industrial growth unexpectedly plummeted to a 17-month low in November as a result of the post-festival season decline in manufacturing, fewer working days in the month and tighter financial conditions.
- The Index of Industrial Production (IIP) stood at 0.47 per cent in November and the high base of last year has also contributed to the slowdown. IIP had witnessed a growth of 8.5 per cent in November 2017.
- Manufacturing which constitutes 77.63 per cent of IIP, shrank 0.4 per cent, the Manufacturing had witnessed a robust growth of 10.4 per cent in November 2017.
- The production of both capital goods and consumer goods saw a decline.
- Mining expanded by 2.7 per cent in November 2018 compared with 1.4 per cent in November 2017.
- The electricity generation rose 5.1 per cent.
- The Production of intermediate items was down 4.5 per cent.
The Industrial growth in India is still not on a sound footing due to the high variability in industrial growth across sectors and within sectors on a month-on-month basis. It is expected that incrementally improving liquidity, normalisation after festive season related disruptions and spending tied to elections would act as a catalyst for the growth.
The projects for defence industrial corridor in Aligarh, Uttar Pradesh were launched recently by Union Defence Minister Nirmala Sitharaman and Uttar Pradesh Chief Minister Yogi Adityanath. It was launched as part of the Union Government’s efforts to develop specialised zones dedicated to defence production in the state.
As part of defence corridor in UP, six nodal points, Agra, Aligarh, Lucknow, Kanpur, Chitrakoot and Jhansi have been identified. There will be exhibition of products by armed forces, defence public sector undertakings (PSUs) and Defence Research and Development Organisation (DRDO) which are planned to be indigenised over the next five years.
Defence Manufacturing was identified as one of the 25 key sectors as part of Make in India initiative. In 2018-19 Union Budget, Government had announced setting up of two corridors – one in Tamil Nadu and other in UP- exclusively for defence manufacturing. The main purpose of setting of these two corridors is for inclusion of Indigenous Design, Development and Manufacture (IDDM) category and giving it top priority in capital acquisition, introduction of make procedure and simplification of licensing process and modification of offset policy.