Expect IIP numbers to improve in 2nd half of FY'14: PMEAC
New Delhi: Prime Minister's Economic Advisory Council (PMEAC) Chairman C Rangarajan on Friday expressed the hope that India's industrial output growth will pick up in the second half of the current fiscal year.
"I see improvement (in IIP numbers) coming along as we go further during the year. I am hoping a better performace in the second half of the year," Rangarajan said here.
After recording modest growth in July, industrial output again slowed down sharply to 0.6 percent in August mainly on account of a contraction in manufacturing and mining.
Factory output, which recorded a growth of 2.8 percent in July, remained almost flat year-on-year because of a slump in production of consumer goods and durables.
The output, measured on the Index of Industrial Production (IIP), was 2 percent in August last year.
As per the data released by the government today, IIP for April-August worked out to be 0.1 percent compared with 0.2 percent in the same period of 2012-13 financial year.
The IIP figure for July has been revised upward at 2.8 percent from 2.6 percent, it said. It had contracted by 1.8 percent in June.
The manufacturing sector, which constitutes over 75 percent of the index, contracted by 0.1 percent in August as against an expansion of 2.4 percent in the year-ago period.
During April-August, the sector saw a decline of 0.1 percent compared with a flat growth in the same period last year.
The mining sector, with a weight of about 14 percent in the IIP, showed a contraction of 0.2 percent in August as against a decline of 0.3 percent in the same month last fiscal.
As per the data, output of capital goods, a barometer of demand, showed a decline of 2 percent as against a contraction of 4.4 percent in August 2012.
However, on cumulative basis, the segment showed an expansion of 0.8 percent in April-August as against a sharp contraction of 14.4 percent.