Dear Member, The real GDP growth in FY17 stood at 7.1 per cent, This is slower than the growth rate posted in FY16, reflecting subdued private investment demand.However with the slew of reforms like GST the Insolvency and Bankruptcy Board of India for corporates will bring about significant gains to India's economy and economy is expected to grow beyond 7.5% during FY18. IMTMA looks forward for the successful implementation of GST which is likely to improve ease of doing business in the country. Manufacturing and capital goods sectors were witnessing a weak trend indicating growth impulses has turn around and registered healthy growth during FY 2017. We expect this trend to continue in the current year which will have positive impact on machine tool industry.
(Director General, IMTMA)
MACRO ECONOMIC - INDICATORS
1. Gross Domestic Product: As per the second advance estimates of national income, released by the Central Statistics Office (CSO) on 31 May, 2017, growth rate of Gross Domestic Product (GDP) at constant market prices is placed at 7.1 per cent in 2016-17 as compared to 8.0 per cent in 2015-16. 2. Industrial Production (IIP):Based on the new series with base year 2011-12, the growth in Index of Industrial Production (IIP) was 3.1 per cent in April 2017, as compared to a growth of 6.5 per cent in April 2016. The IIP growth during 2016-17 was 5.0 per cent, as compared to 3.4 per cent during 2015-16 3. Exports & Imports:The value of merchandise exports and imports increased by 8.3 per cent and 33.1 per cent respectively in US dollar terms during May 2017 over May 2016. During May 2017 the value of oil and non-oil imports increased by 29.1 per cent and 34.5 per cent respectively over May 2016.
4. Wholesale price index: The WPI headline inflation declined to 2.2 per cent in May 2017 from 3.9 per cent in April 2017. CPI (New Series) inflation declined to 2.2 per cent in May 2017 from 3.0 per cent in March 2017.
5. Foreign Exchange Reserves: Foreign exchange reserves were US$ 378.8 billion at as on 26th May 2017 compared to US$ 370.0 Bn on end March 2017. The rupee appreciated against the US dollar, and Japanese Yen by0.1 per cent, 2.0 per cent respectively, while depreciated against Pond sterling and Euro by 2.0 and 2.9 per cent respectively in May 2017 over April 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 declined by 3.8 per cent during April 2017 as compared todecline of 1.8 percent during April 2016. During April-March 2016-17 Core Sectors grew by 3.2 percent compared to 4.8 percent growth in the corresponding period of previous year.
Percentage Change in Index of Industrial Production