Dear Member, November saw a strongest growth in the Indian manufacturing sector in last 13 months, supported by decrease in GST rates and with strong demand conditions. As per world bank report Indian economy is expected to grow about 7 percent during 2018 it is likely to reclaim the position as fastest growing economy in 2018. Growth in capital goods sector, infrastructure/construction is likely to propel growth for machine tool industry. we expect the buoyancy of orders which industry has witnessed during 2017 will likely to continue in 2018.
(Director General, IMTMA)
MACRO ECONOMIC - INDICATORS
Gross Domestic Product: The growth rate of Gross Domestic Product (GDP) at constant market prices in second quarter (July-September) (Q2) of 2017-18 was 6.3 per cent, as compared to 7.5 per cent in the corresponding period of previous year.
Industrial Production (IIP): The Index of Industrial Production (IIP) grew by 2.2 per cent in October 2017, as compared to a growth of 4.2 per cent in October 2016. IIP growth during April-October 2017 was 2.5 per cent, as compared to growth of 5.5 per cent during April-October 2016.
Exports & Imports: The value of merchandise exports increased by 30.5 per cent and that of merchandise imports increased by 19.6 per cent in US$ terms in November 2017 over November 2016. During November 2017, oil imports and non-oil imports increased by 39.1 per cent and 14.6 per cent respectively over November 2016.
Wholesale price index: The headline WPI inflation increased to 3.9 per cent in November 2017 from 3.6 per cent in October 2017. CPI inflation increased to 4.9 per cent in November 2017 from 3.6 per cent in October 2017.
Foreign Exchange Reserves: Foreign exchange reserves stood at US$ 400.7 billion on 24th November 2017 as compared to US$ 370.0 billion at end-March 2017. The rupee appreciated against the US dollar, Pound sterling Euro and Japanese Yen by 0.3 per cent a, 0.2 per cent, 0.5 per cent and 0.3 per cent respectively in November 2017 over October 2017.
EIGHT CORE INDUSTRIES
The index for eight core industries (comprising crude oil, petroleum refinery products, coal, electricity, cement, steel, natural gas and fertilizers) with a weight of 37.9 per cent in the IIP increased by 4.7 per cent during Oct 2017 as compared to growth of 7.1 percent during Oct 2016. During April-Oct 2017-18 Core Sectors grew by 3.5 percent compared to 5.6 percent growth in the corresponding period of previous year.
Percentage Change in Index of Industrial Production
Source: CSO, : Figures for October 2017 are Quick Estimates