“Make in India” is not able to raise industrial production in India; MIP growth is likely to be so
The government’s efforts to achieve Make in India success have not yet affected the growth of industrial production in the country.
The government’s efforts to achieve Make in India success have not yet affected the growth of industrial production in the country. India’s Industrial Production Index (IIP) growth is expected to drop to 2 percent in the current fiscal year 2019-20 FICCI said in its review of economic prospects.
“The participating economists put forward a forecast of average IIP growth of 2 percent for 2019–2020 with a minimum and maximum range of 0.4 percent and 4.0 percent, respectively,” the survey said. The new IIP estimate for this fiscal year is half the industrial growth in India at 4.4% in the previous fiscal year 18. As capacity utilization in key sectors such as the automotive industry, declined and capital goods continued to decline, total production remained lower.
Surya Grahan 2019 The last Solar Eclipse of the year 2019 India
Despite the fact that MIP declined for three consecutive months in the fiscal year 20, in November 2019 it grew at a moderate pace. The favorable base effect and reduction in the reduction in the main industries played an important role in improving the growth of industrial production in November. Nevertheless, for the year as a whole, in the first eight months of the financial year, the growth of aggregate growth amounted to only 0.6%, which led to a decrease in overall estimates for the year.
In the period from April to November of the last fiscal period, the IIP was significantly higher and amounted to 5 percent. Meanwhile, a Reserve Bank study on industrial development forecasts showed that due to continued low sentiment regarding production, domestic and foreign demand, and the employment scenario, “the general mood in the manufacturing sector remained pessimistic in the third quarter of fiscal 2009”.
In addition, manufacturing firms that previously interviewed also expected weak demand conditions and reduced pressure on entry prices in the third and fourth quarters of the current fiscal year. FICCI, on the other hand, estimated IIP growth at 4.7 percent in the fourth quarter of the current financial period. The industry body also expects WPI and CPI to grow by 2% and 4.3%, respectively.