IIP CPI Weak India Inc Bats For Immediate Policy Measures
Industrial production contracted for the second consecutive month in December — dragged down by manufacturing and mining — and raised fresh doubts about the contradiction between the factory output number and the gross domestic product (GDP) data released by the Central Statistics Office (CSO). Industrial production, measured in terms of index of industrial production (IIP), declined 1.3% in December, mostly due to weakness in manufacturing and capital goods. “Negative growth in manufacturing and indifferent growth in mining have got wider implications and needs to be addressed on a priority basis. Retail inflation, measured in terms of Consumer Price Index (or CPI) rose to a 16-month high in January, climbing to 5.69% n January compared with 5.61% in December. CPI stood at 5.19% in January last year. The significant shrinkage in the production of capital goods shows that industrial revival is going to be one of the major challenges,” Assocham President Sunil Kanoria said. Factory output in November too declined 3.4%, according to data released by Central Statistics Office (CSO). The index had registered a growth of 3.6% in December 2014.