Economic Survey projects decline in industrial sector output during FY17

First advance estimates from CSO put industrial sector growth at 5.2% in FY17 against 7.4% in FY16

The Economic Survey 2016-17 tabled in Parliament on Tuesday by Union Finance Minister Arun Jaitley projected a decline in industrial sector output during 2016-17.

According to the survey, the first advance estimates from the Central Statistics Office (CSO) showed that the growth rate of the industrial sector is projected at a slower 5.2 per cent in 2016-17 than the 7.4 per cent reported in 2015-16.

"During April-November 2016-17, a modest growth of 0.4 per cent has been observed in the Index of Industrial Production (IIP), which is a volume index with base year of 2004-05," the survey said.

"This was the composite effect of a strong growth in electricity generation and moderation in mining and manufacturing."

The survey pointed out that in terms of use-based classification, basic goods, intermediate goods and consumer durable goods attained moderate growth.

Conversely, the production of capital goods declined steeply and consumer nondurable goods sectors suffered a modest contraction during April-November 2016-17.

"The eight core infrastructure supportive industries, viz. coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity, registered a cumulative growth of 4.9 per cent during April-November 2016-17, as compared to 2.5 per cent during April-November 2015-16," the survey showed.

The survey elaborated that production of refinery products, fertilisers, steel, electricity and cement increased substantially, whereas the production of crude oil and natural gas fell during April-November 2016-17.

"Coal production attained lower growth during the same period," the survey added.