IIP data indicates resilience of industry: ASSOCHAM

IIP data indicates resilience of industry
Appreciating the recently released industrial growth output data at 5.9 per cent, Associated Chambers of Commerce and Industry of India (ASSOCHAM) said the data is indicative of the resilience of the industry.

“The growth is primarily driven by the consumer durables and non-durables, indicating a strong growth in demand, while growth in key industries like mining, manufacturing and capital goods have been below expectation," said ASSOCHAM secretary general D.S. Rawat.

The data revealed has provided a much needed relief to the industry as the same for the month of October declined by 5.1 per cent. Last month, the poor performance figures were mainly due to the sluggish performance of the manufacturing, mining and electricity sector.

“The lackluster performance of the capital goods and intermediate goods sector is mainly due to slow inflow of investments which has also compelled the Reserve Bank of India (RBI) to take a hard monetary stand," said Rawat.

Meanwhile, the Finance Minister Pranab Mukherjee sharing a similar view point said that the data reflects the strong recovery that took place over the previous month when there was a contraction in IIP by about (-) 4.7 per cent (revised).

“Though growth in capital goods continues to be negative (-) 4.6 %, yet there has been a strong revival of growth in consumer goods at over 13 per cent with consumer non-durables goods growing faster than the consumer durables goods," said Pranab Mukherjee.

Dion Global Solutions Ltd

Read more about: iip, rbi, monetary policy
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