Economy updates

Economy Update

Dear Member,

The Indian economy is expected to grow at a healthy rate of 7.4 percent this year as per RBI estimates. The recent growth seen in manufacturing and infrastructure sectors has led to a robust recovery of the capital goods industry which includes the machine tool industry. Indian Machine tool industry has recorded a strong growth of more than 25% during 2017-18. With favourable macro-economic environment and strong orders from the user industry, machine tool industry is expected to show positive growth during the current year.

V Anbu

(Director General, IMTMA)

MACRO ECONOMIC - INDICATORS
Gross Domestic Product: As per the provisional estimates of national income released by Central Statistics Office (CSO) on 31st May 2018, the growth of Gross Domestic Product (GDP) at constant market prices for the year 2017-18 is estimated at 6.7 percent. The growth rate of GDP was 7.1 percent in 2016-17. Industrial Production (IIP): IIP grew by 7.0 percent in June 2018, as compared to a decline of 0.3 percent recorded in June 2017. IIP growth during April-June 2018-19 was 5.2 percent, as compared to growth of 1.9 percent during the corresponding period of the previous year. Exports & Imports: The value of merchandise exports and imports increased by 14.3 percent and 28.8 percent respectively in US$ terms in July 2018 over July 2017. During July 2018, oil imports increased by 57.4 percent and non-oil imports increased by 20.2 percent in US$ terms over July 2017. Wholesale price index: CPI inflation decreased to 4.2 percent in July 2018 from 4.9 percent in June 2018. The WPI inflation increased to 5.1 percent in July 2018 from 5.8 percent in June 2018. Foreign Exchange Reserves: Foreign exchange reserves stood at US$ 400.9 billion at 10th August 2018, as compared to US$ 424.5 billion at end-March 2018. The rupee depreciated against the US dollar, pound sterling, Euro and Japanese Yen by 1.3 percent, 0.5 percent, 1.4 percent and 0.1 percent respectively in July 2018 over June 2018.
EIGHT CORE INDUSTRIES

Production of eight core infrastructure industries (comprising crude oil, petroleum refinery products, coal, electricity, cement, steel, natural gas, and fertilizers) grew by 6.6 percent in July 2018, as compared to 2.9 percent in July 2017. During April-July 2018-19, the production of eight core industries grew by 5.8 percent, as compared to the growth of 2.6 percent in the corresponding period of the previous year.

INDUSTRIAL INDICATORS

Percentage Change in Index of Industrial Production

Industry Group	2017-18 April- June	2018-19 April- June	June 2017	June 2018
General Index	1.9	5.2	-0.3	7.0
Mining	1.1	5.4	0.1	6.6
Manufacturing	1.6	5.2	-0.7	6.9
Electricity	5.3	4.9	2.1	8.5
Primary goods	2.2	5.9	-0.3	9.3
Capital goods	-4.2	9.5	-6.1	9.6
Intermediate goods	1.0	1.6	-1.2	2.4
Infrastructure/Construction Goods	1.7	7.7	1.0	8.5
Consumer Durables	-1.2	7.9	-3.5	13.1
Consumer Non-Durables	7.8	1.8	4.8	0.5

Reference

https://dea.gov.in/sites/default/files/MER_July_2018.pdf