State of The Industries: KRC Ecoreview  

The Index of Industrial Production (IIP) data released by the Centre for Statistical Organization (CSO) for the month of January 2008 presents a very disturbing trend in the secondary sector of the economy. The index is showing a sharp moderation in the industrial sector growth in January this year vis-à-vis same month in the previous year. The General index grew by just 5.3 per cent showing a sharp dip from the height of 11.6 per cent a year ago. The more disturbing fact is a highly dismal performance of the Six Core Infrastructure Industries, which means that the trouble is more than skin-deep. But, at the same time, the cumulative ten-month figures depict an impressive close to nine per cent (8.7 per cent) growth in the general index. Then, do the current data show merely a monthly blip or some sharp changes in the fundamentals?

IIP movement in the current year

Economists disagree on the issue that whether the latest IIP figures are just an aberration or a trend? Though, the moderation in the economy looks obvious, the views differ on the degree of malaise the economy might be suffering with. Let us now look at the data set released and try to read between the lines. The growth figures look subdued, especially when looked in comparison with that of the month of January 2007.

Let us now look at the comparative rates of growth for both the year in the month of January. Read More.

Click here to read the complete State of The Industries exclusive report by KR Choksey.

Report Contents:

  • Growth Rate Comparison: January ’08 vis-à-vis January ’07

  • Cumulative Growth: April to January

  • Performance of some critical Sectors

  • Cumulative Auto sales Y-O-Y growth rate (%)

  • What is in store

  • And More Click Here

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Written by K R Choksey

March 31st, 2008 at 10:23 am

Posted in K R Choksey

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