Uptick in IIP encouraging; slow growth in capital goods, a cause of concern: PHD Chamber

After a continuous decline in industrial production for three months in a row, increase in IIP from (-)1.5% in January 2016 to 2% in February 2016 is encouraging, said Dr. Mahesh Gupta, President PHD Chamber of Commerce and Industry in a press statement issued here today. However, decline in capital goods for the month of February 2016 is worrying as growth of capital goods is an indicative of investment activities in the economy, said Dr. Mahesh Gupta. The capital goods showed a growth of (-)9.8% which is though higher than growth in January 2016 (at -20.9%), is still in negative trajectory. Nonetheless manufacturing sector grew from (-)2.8% in January 2016 to 0.7% in February 2016 while consumer goods grew from (-)0.04% in January 2016 to 0.8% in February 2016. Going ahead, significant announcements in the various segments of the economy particularly to revive the rural economy announced in the Budget for 2016-17 would help to revive demand and help in industrial activity to grow at a higher trajectory in the coming times, said Dr. Gupta.