Coal news and updates

November IIP falls to record low of 3.2% y-o-y

The Index of Industrial Production (IIP) for November 2015 stood at 166.6, down 3.2% as compared to the same month in the previous year. In October 2015, IIP growth had touched its 5-year high of 9.9%. But in this month the scenario was absolutely opposite and it was the sharpest fall since 2011. The cumulative growth for the period April-November, 2015 over the corresponding period of the previous year stands at 3.9%. Except for the manufacturing sector, all the other sectors, such as mining and electricity, reported a fall in the IIP figure.

Out of 22 industry groups, 17 categories reported negative growth. The highest negative growth was reported by ‘electrical machinery & apparatus’ (-) 46.5 %. It was followed by (-) 13.8% in ‘luggage, handbags, saddlery, harness & footwear; tanning and dressing of leather products’ and (-) 13.1% in ‘wood and products of wood & cork except furniture. 

Some important items showing high negative growth during the current month over the same month in previous year include ‘cable, rubber insulated’ (-) 87.1%, ‘heat exchangers’ (-) 68.2%, ‘polythene bags’ (-) 58.0%, ‘tractors’ (-) 42.3%, ‘conductor, aluminium’ (-) 36.8%, ‘rice’ (-) 27.1% and ‘three-wheelers (-) 23.7%. 

The overall global economy has been going through a stagnant phase for the last couple of years. On the other hand, rural and domestic demand has also not been showing any positive growth. That is why economists and analysts expect the fall in the IIP to be reflected in the coming Budget of Finance Minister Arun Jaitley.

Source: ICMW