The economic slowdown has decelerated industrial output in Uttar Pradesh by 3.6 per cent year-on-year in July 2019, even as India’s industrial production logged 4.3 per cent growth in the same period.
Interestingly, UP's industrial output grew 3.2 per cent YoY in June 2019, exceeding the all-India figure of 2% that month.
But in July, UP’s industrial index dipped largely due to sudden slowdown in the mining and manufacturing sectors, although mining had been driving its industrial growth over the past several months.
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 here, the state’s mining, manufacturing and electricity sectors witnessed growth of -14.4 per cent, -2.6 per cent and 4.1 per cent respectively in July 2019.
According to institute director Arvind Kumar Pandey, the state’s Index of Industrial Production (IIP) in July 2019 stood at 114, which was 3.6 per cent lower than in July 2018, pulling growth into negative territory. The IIP for mining, manufacturing and electricity stood at 110.8, 112.6 and 134.7 respectively in July 2019.
‘Quick Estimates’ are prepared as per the methodology of Central Statistical Office, Government of India, using the data provided by various factories and departmental head offices.
The state’s industrial output index for July 2019, based on 23 different industry groups, was prepared in September, and the results have now been released.
Of the 23 industry groups taken up for deriving the industrial index, 16 manufacturing sectors showed positive growth in July 2019 over the corresponding month last fiscal.
Interestingly, only 13 of 23 industry groups in the manufacturing sector at an all-India level had shown positive growth during July 2019 compared to 16 groups in UP. Yet, the state’s IIP fell by 3.6 per cent.
Meanwhile, 'other' manufacturing industries showed the highest 50.5 per cent growth, followed by furniture, at 34.1 per cent.
On the other hand, printing and records media group delivered growth of -41.1 per cent, followed by motor vehicle, trailers and semi trailers -37 per cent.
These indices are prepared on basis of ‘use-based’ classification, namely, index of primary goods, capital goods, intermediate goods, infrastructure/construction goods, consumer durable goods and consumer non-durable goods.
In July 2019, the growth was largely negative in such segments with primary goods showing growth/de-growth of -5.3 per cent, capital goods, -8.2 per cent, infrastructure/construction goods, -11.4 per cent and intermediate goods at 7.1 per cent.
Consumer durable non-durable goods posted growth figures of 2.2 per cent and -10.2 per cent, respectively.
In June 2019, the state electricity, mining and manufacturing sectors expanded by 8.7 per cent, 4 per cent and 2.5 per cent, respectively, over June 2018.