industrial growth Archives - indiabusinessview

Rail freight rises: core sector in good shape

November 8, 2009August 20, 2014Editor

India’s goods traffic movement is a good lead indicator of how some core sectors are performing. Coal is shipped by rail. Steel plants transport ore and other raw materials to their plants, and transport finished steel back by rail. Other key commodities being transported by rail include fertilisers, foodgrains and crude oil. An increase in freight traffic either indicates higher demand for raw materials (coal is used by power and steel plants) or higher production because shipments are going up.

India’s factory output grows by 7.3% in June 2009

August 12, 2009August 20, 2014Editor

Industrial output for June 2009 is a bright spot amidst the gloom, caused by a near certain drought and a swine flu outbreak in the country. The index of industrial production (IIP) for June 2009 has increased by 7.8% over the same period last year. There was a partial base effect, as mining grew by 15% compared to a 0.1% growth in June 2008 and electricity grew by 8% compared to 2.6%.

India’s industrial output grows in May 2009

July 10, 2009August 20, 2014Editor

A revival in industrial production is a healthy sign for the Indian economy, as it had turned negative in the recent past. With a question on agricultural output due to a late monsoon, it falls upon industry and services to contribute to the economy’s growth in 2009-10.

What:

The index of industrial production for May 2009 has increased by 2.7%, doubling from its growth in April 2009.
The manufacturing index, a keenly watched sub-indicator, grew by 2.5%.

Why:

Inflation nears zero: WPI at 0.18%

April 17, 2009August 20, 2014Editor

In recent months, industrial output and inflation have both falling. That has led to fears of deflationary conditions prevailing in the economy, an undesirable phenomenon. Some expect the RBI to lower interest rates again to revive demand. But the RBI itself wants the impact of the measures it has taken to percolate fully, before it takes more measures.

India’s industrial growth declines

December 12, 2008August 20, 2014Editor

India’s industry is in trouble, with the index of industrial production declining by 0.4% in October 2008. Recent months have seen a distinct slowdown of production but this is the first time that there has been a decline. The main cause is a 1.2% decline in the manufacturing index even as the mining and electricity indices grew a bit.