Decline in IIP worrying: PHD Chamber of Commerce and Industry

Continuous decline in IIP for the third month in a row is worrying, said Dr. Mahesh Gupta, President, PHD Chamber of Commerce and Industry in a press statement issued here today.

Decline in capital goods for the month of January 2016 is worrying as growth of capital goods is an indicative of investment activities in the economy, said Dr. Mahesh Gupta.

The IIP declined to (-) 1.5% in January 2016 from (-)1.2% in December 2015. Capital goods declined to (-)20.4% in January 2016 from (-)19.1% in December 2015 while the manufacturing growth stands at (-)2.8% in January 2016. Growth in consumer durables also declined substantially from 16.3% in December 2015 to 5.8% in January 2016.

However, significant announcements in the various segments of the economy would help to revive demand and help in industrial activity to come in momentum, said Dr. Mahesh Gupta.