Uttar Pradesh's industrial output has declined by 3.6 per cent in August 2019 compared to the corresponding month last year owing to poor performance by the mining and manufacturing sectors.
Considering India’s industrial index reflected only 1.1 per cent dip in August 2019, the comparative pull down of UP’s industrial growth by over 300 per cent has been massive, especially with the state is targetting to hit $1-trillion economy mark by 2024.
This is the second consecutive month that the state's industrial index has rested in the negative territory after logging a 3.6 per cent year-on-year dip in performance in July 2019.
Interestingly, UP had witnessed industrial growth of 3.2 per cent in June 2019, thus beating India’s industrial growth of 2 per cent in the same period.
As per the Quick Estimates of Index of Industrial Production on base year 2011-12 released by the Economics and Statistical Division of the UP Planning Institute, the mining, manufacturing and energy sectors witnessed growth of (-) 9.4 per cent, (-) 4.3 per cent, and 13.9 per cent respectively in August 2019.
‘Quick Estimates’ are purely based on the methodology of Central Statistical Office, Government of India and by using the data provided by various factories and departmental head offices.
According to Institute’s director Arvind Kumar Pandey, the state’s Index of Industrial Production (IIP) in August 2019 stood at 112.4 per cent, which was 3.6% lower compared to August 2018. The IIP for mining, manufacturing and electricity stood at 113.9 per cent, 109.5 per cent and 142 per cent respectively in August 2019.
The state’s industrial output index, based on 23 distinct industrial categories, of August 2019 was prepared in October, and the analysis has now been released in the public domain.
Of the 23 industry groups taken up for determining UP’s industrial index, 14 manufacturing sectors showed positive growth during August 2019 compared to the corresponding month last financial year.
Meanwhile, ‘other manufacturing industries’ group posted the maximum 51 per cent growth, followed by ‘paper and paper products’ at 17.8 per cent. On the other hand, ‘motor vehicle, trailers and semi trailers’ and ‘printing and recorded media’ heads showed steepest negative growth of (-) 48 percent and (-) 37 per cent respectively.
The industrial index is also prepared on the basis of ‘use based’ classification viz. index of primary goods, capital goods, intermediate goods, infrastructure/construction goods, consumer durable goods and consumer non-durable goods.
In August 2019, the primary goods heads witnessed 1.7 per cent growth with other segments returning growth/de-growth of (-) 23.5 per cent (capital goods), 6.2 per cent (intermediate goods) and 7.3 per cent (infrastructure/construction goods) respectively.
In July 2019, mining, manufacturing and energy had witnessed growth of (-) 14.4 per cent, (-) 2.6 per cent and 4.1 per cent respectively.