Finance Minister Arun Jaitley and RBI Governor Urjit Patel
Finance Minister Arun Jaitley and RBI Governor Urjit Patel

Economy

Boost For India As Industrial Production (IIP) Grows Even As Consumer Inflation (CPI) Falls

Written By Ankit Prasad | Mumbai | Published:

Hack:

  • India's CPI inflation has eased to 3.31% in October in comparison to 3.77% in September
  • Industrial production has shown an increase, being estimated to have grown at 4.5% in September versus 4.3% in August

In a boost for India, Industrial Production showed an increase of 0.2% between August and September 2018, with the Index of Industrial Production (IIP) for the latter month being recorded at 4.5%, even as Consumer Price Index (CPI) inflation eased during the September to October period, from 3.77% to 3.31%, powered by a fall in food inflation from 0.51% in September to -0.86% in October.

Data from the Central Statistics Office in the Ministry of Statistics and Programme Implementation highlighted that both rural and urban inflation had contributed to the Consumer Price Index's easing:

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On the Index of Industrial Production, (IIP), MOSPI says the following:

  1. The Quick Estimates of Index of Industrial Production (IIP) with base 2011-12 for the month of September 2018 stands at 128.6, which is 4.5% higher as compared to the level in the month of September 2017. The cumulative growth for the period April-September 2018 over the corresponding period of the previous year stands at 5.1%.
  2. The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of September 2018 stand at 94.6, 131.4 and 162.9 respectively, with the corresponding growth rates of 0.2%, 4.6% and 8.2% as compared to September 2017. The cumulative growth in these three sectors during April-September 2018 over the corresponding period of 2017 has been 3.3%, 5.3% and 6.2% respectively.
  3. In terms of industries, seventeen out of the twenty-three industry groups in the manufacturing sector have shown positive growth during the month of September 2018 as compared to the corresponding month of the previous year. The industry group ‘Manufacture of furniture’ has shown the highest positive growth of 32.8 % followed by 20.9% in ‘Manufacture of wearing apparel’ and 20.6% in ‘Manufacture of wood and products of wood and cork, except furniture; manufacture of articles of straw and plaiting materials’. On the other hand, the industry group ‘Printing and reproduction of recorded media’ have shown the highest negative growth of (-) 12.9% followed by (-) 10.7% in ‘Other manufacturing’ and (-) 7.3% in ‘Manufacture of tobacco products’

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Tweeting on the development, Railways Minister Piyush Goyal (who also held the Finance Ministry portfolio while Arun Jaitley was on medical leave) credited the Prime Minister and the Finance Minister for succeeding in achieving higher growth while keeping price rise under control.

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