The pace of industrial production in the country has slowed down. The Index of Industrial Production (IIP) grew by 3.2 per cent in October, compared to 3.3 per cent in September. IIP registered a growth of 12 per cent in August. According to October 2020, it has also declined significantly. In October 2020, a growth of 4.5 was recorded in IIP.
Huge decline in the production of consumer durables
There has been a significant decline in the production of Capital Goods and Consumer Durables, two indices indicating the pace of industrial production. The production of capital goods has declined by 1.1 percent as compared to October last year (2020). Whereas in September it had increased by 2.4 percent. Similarly, the production of consumer durables has fallen by 6.1 per cent. However, growth of 0.5 per cent was registered in non-durables goods. If we look at the data of industrial production, except mining, the performance of other sectors has been disappointing. The manufacturing sector grew only 2 per cent in October, while the growth of electricity generation was 3.1 per cent.
Paytm Payments Bank gets Scheduled Payments Bank status, know what will change now
Festive demand also has no effect on industrial production
It is clear from these figures that the pace of industrial production has slowed down because the pent-up demand which had given rise to it, has now decreased. The impact of slowing down of festive demand for Diwali and earlier is clearly visible on this. If seen, the growth of IIP in the last two and a half years has hardly been encouraging. It was showing a decline even before the corona epidemic in the country.
The rapid growth after Corona has also been the result of low base effect. However, in August (2021), when IIP registered a growth of 12 percent, it was being said that consumer demand is increasing in the country and its effect is visible on it. Demand was expected to increase further in the festive season that started in late September and it was being said that many sectors of the economy, including the manufacturing sector, would benefit from this. But the disappointing data of industrial production in October gave this estimate wrong. proved.
Get Business News ,, latest India News ,, and other breaking news on share market, investment scheme and much more on Business Khabar. Like us on Facebook, Follow us on Twitter for latest financial news and share market updates.
.