Facing slowdown headwinds, Uttar Pradesh’s industrial output contracted sharply by 9.6 per cent in October 2019 over the corresponding month in the last financial year 2018-19.
The month-on-month (MoM) 9.6 per cent decrease in October 2019 is more than twice that posted by India’s industrial sector in October 2019 at 4.3 per cent, according to the Index of Industrial Production (IIP) data released by the Central Statistics Office (CSO).
Interestingly, UP had logged a MoM industrial growth of 0.4 per cent in September 2019 even as the India’s IIP had contracted by 4.3 per cent that month. The state’s industrial output had earlier returned two successive months of negative growth of (-) 3.6 per cent each during July and August 2019 respectively before entering positive territory in September.
According to the Quick Estimates of IIP on base year 2011-12 released by the Economics and Statistical Division of the UP Planning Institute, the state's mining, manufacturing and electricity sectors had shrunk by 19.1 per cent, 7.7 per cent and 11.9 per cent, respectively.
‘Quick Estimates’ are 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 UP Planning Institute director Arvind Kumar Pandey, the state’s IIP in October 2019 stood at 113.6 per cent, which was 9.6 per cent down compared to the corresponding month last year. The IIP for mining, manufacturing and electricity stood at 115.3 per cent, 112.1 per cent and 127.7 per cent respectively in October 2019.
Based on 23 distinct industrial categories, the state’s industrial output index of October 2019 was prepared in December, and the results have now been released.
Of the 23 industry groups taken up for determining UP’s industrial index, only three manufacturing sectors have shown positive growth in October 2019 compared to the corresponding month last fiscal year.
The industry group ‘manufacture of electrical equipment’ showed the highest positive growth of 72.5 per cent, followed by 52.5 per cent in ‘other manufacturing industries’.
The industry group ‘manufacture of motor vehicles, trailers and semi trailers’ posted the highest lopsided growth of (-) 49.3 per cent, followed by (-) 37.2 per cent by ‘manufacture of furniture’ category.
Meanwhile, 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.
The MoM growth rates in October 2019 for primary goods, capital goods, intermediate goods and infrastructure/construction goods stood at (-) 11.9 per cent, (+) 19.7 per cent, (-) 10.4 per cent and (-) 13.4 per cent respectively. Consumer durables and consumer non-durables reported growth of (-) 2.3 per cent and 10.6 per cent respectively.