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Shrugging off the impact of the note ban in November and December on purchasing power, the updated series of factory output shows a sharp growth in consumer durables and non-durables.
According to the use-based classification of the updated Index of Industrial Production (IIP), consumer non-durables grew by 9 per cent in 2016-17 as against a mere 2.7 per cent in the previous fiscal.
Similarly, consumer durables production rose by 6.2 per cent last fiscal compared with 4.2 per cent in 2015-16.
The data are part of the new IIP series with a base year of 2011-12 that was released by the Ministry of Statistics and Programme Implementation on Friday.
On a cumulative basis, IIP grew by 5 per cent last fiscal as against 3.4 per cent in 2015-16. The data also revealed that the category of primary goods, which has replaced the category of basic goods, registered a growth of 4.9 per cent last fiscal as against 5 per cent in 2015-16.
Output of capital goods was also lower at 1.9 per cent last fiscal versus 2.1 per cent in 2015-16.
However, intermediate goods production grew 3 per cent in 2016-17 while infrastructure and construction goods rose by 3.8 per cent.
TCA Anant, Secretary, MoSPI, said that the IIP is now more representative with more factories in the panel for reporting and inclusion of new items in the items basket.
Divergence narrows“The divergence between the data of the IIP, Annual Survey of Industries and the manufacturing estimates in the gross domestic product will now be somewhat narrowed but not completely eliminated,” he said, pointing out that the IIP is a volume concept.
Analysts agreed and said that the IIP now has an improved basket of goods.
“Deletion of items such as calculators, colour TV picture tubes etc. and increase in item groups and capturing of ‘work in progress’ in capital goods will certainly improve quality of industrial statistics,” said DK Pant, Chief Economist, India Ratings and Research.
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