India’s Industrial Growth Lowest In 10 Years
In a disturbing trend, India’s industrial growth has been found the lowest in last ten years. Index of Industrial Production (IIP), ascertains this as the worst in the decade at -0.27 percent. Shortly after the Lehman crisis in 2008, the Industrial growth has sluggish. Lehman Brothers Holding Inc was a global financial services firm. With holding over $600 billion in assets, it went bankrupt after filing for Chapter 11 bankruptcy protection on September 15, 2008. But the industrial growth has not yet been able to revive. In Fact, it has plummeted more which is a red signal for an industrial sector.
The manufacturing sector has shown a significant decline in last five years by 1.18%. The falloff has been in capital goods by 21.46%, and it has deteriorated more. The contraction was worse in 2012-13. There has been another decline in the consumer durables; though in the last five-year it has been able to grow a bit above mark which is taken as a positive point in the IIP. The consumer non-durable goods have been contracted by 2.8% due to the drought of 2009-10, which resulted in food inflation, and have restricted the demand for the basic consumer good. But the exact reason for the decline in the consumer non-durables is still hard to determine, as reported by the Mint.
The Index of Industrial Production (IIP) is an index which details out the growth of the various sectors in an economy such as mining, electricity and manufacturing.