New Delhi: Industrial production bounced back in January expanding by 2.7 per cent year-on-year mainly due to better performance by the capital goods segment, a barometer of investment activities.
The factory output, measured in terms of IIP, had contracted by 0.1 per cent in December on account of cash crunch following demonetisation of high value currency notes. The industry output had expanded by 5.53 per cent in November.
The capital goods segment grew by 10.7 per cent in January against a contraction of 21.6 per cent in the same month of last financial year.
The basic goods category expanded by 5.3 per cent against 1.9 per cent growth in January 2016.
On the other hand, the intermediate goods category contracted by 2.3 per cent. Despite quickening of the remonetisation process, the consumers goods segment contracted by 1 per cent in January. It comes over a 0.1 per cent decline in January 2016.
In the consumer goods segment, durable items expanded by 2.9 per cent, but non-durable contracted by 3.2 per cent.
On cumulative basis, IIP during April-January 2016-17 showed an expansion of 0.6 per cent, which was lower than 2.7 per cent reported in the year-ago period. The IIP for mining, manufacturing and electricity sectors posted growth rates of 5.3 per cent, 2.3 per cent and 3.9 per cent respectively in January 2017.
