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Economic Survey 2017: Projects to decline in industrial sector output
The Economic Survey 2016-17 tabled in Parliament on Tuesday by Union Finance Minister Arun Jaitley projected a decline in industrial sector output during 2016-17.
New Delhi: The Economic Survey 2016-17 tabled in Parliament on Tuesday by Union Finance Minister Arun Jaitley projected a decline in industrial sector output during 2016-17.
According to the survey, the first advance estimates from the CSO (Central Statistics Office) showed that the growth rate of industrial sector is projected at a slower 5.2 per cent in 2016-17 than the 7.4 per cent reported in 2015-16.
"During April-November 2016-17, a modest growth of 0.4 per cent has been observed in the Index of Industrial Production (IIP), which is a volume index with base year of 2004-05," the survey said.
"This was the composite effect of a strong growth in electricity generation and moderation in mining and manufacturing."
The survey pointed out that in terms of use-based classification, basic goods, intermediate goods and consumer durable goods attained moderate growth.
Conversely, the production of capital goods declined steeply and consumer nondurable goods sectors suffered a modest contraction during April-November 2016-17.
"The eight core infrastructure supportive industries, viz. coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity, registered a cumulative growth of 4.9 per cent during April-November 2016-17, as compared to 2.5 per cent during April-November 2015-16," the survey showed.
The survey elaborated that production of refinery products, fertilisers, steel, electricity and cement increased substantially, whereas the production of crude oil and natural gas fell during April-November 2016-17.
"Coal production attained lower growth during the same period," the survey added.