Industrial growth slows to 5-month low

Industrial growth slows to 5-month low

Economic growth; Industry

News:

1. Data released by Central Statistics Office (CSO) show that industrial output growth has slowed to a 5-month low of 4.4% in March

Important Facts:

2. The slow industrial output growth has been attributed to a fall in capital goods production and deceleration in mining activity
3. The industrial growth (measured by the Index of Industrial Production (IIP)) in 2017-18 declined to 4.3 per cent, from 4.6 per cent in the previous financial year
4. Manufacturing sector (contributes 78% of industrial output) grew at 4.4 percent in March as compared to 3.3 percent in the same month a year ago
5. Since India meets 80% of its oil demand from imports, the present rise in oil prices pose a great challenge for India. Companies with significant transport cost might cut their expansion plans as low rural demand has affected India’s economic growth.
6. The RBI is expected to hold interest rates in its next policy meeting due to rising concerns of inflation
7. The India Prime Minister plans to boost infrastructure sector by investing 5.97 trillion rupees in 2018-19 fiscal year.