Economy updates

Economy Update

Dear Member,

The Indian economy is expected to grow at healthy rate of 7.4 percent this year as per RBI estimates. The recent expansion activity seen in manufacturing industry augers well for 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 user industry machine tool industry is s expected to show a positive growth during the current year.

V Anbu

(Director General, IMTMA)

MACRO ECONOMIC - INDICATORS
Gross Domestic Product: As per the second advance estimates of national income released by Central Statistics Office (CSO) on 28th February 2018, the growth of Gross Domestic Product (GDP) at constant market prices for the year 2017-18 is estimated at 6.6 per cent. The growth rate of GDP was 7.1 per cent in 2016-17 Industrial Production (IIP): The Index of Industrial Production (IIP) grew by 7.5 per cent in January 2018, as compared to a growth of 3.5 per cent in January 2017. IIP growth during April- January 2017-18 was 4.1 per cent, as compared to growth of 5.0 per cent during April- January 2016-17. Exports & Imports: During February 2018, the value of merchandise exports and imports increased by 4.5 per cent and 10.4 per cent respectively in US$ terms over February 2017. During February 2018, oil imports and non-oil imports increased by 32.1 per cent and 4.1 per cent respectively over February 2017. Foreign Exchange Reserves: Foreign exchange reserves stood at US$ 420.6 billion on 23rd February 2018, as compared to US$ 370.0 billion at end-March 2017. The rupee depreciated against the US dollar, Pound sterling, Euro and Japanese Yen by 1.1 per cent, 2.7 per cent, 2.7 per cent and 4.0 per cent respectively in February 2018 over January 2018. Wholesale price index: The headline WPI inflation decreased to 2.5 per cent in February 2018 from 2.8 per cent in January 2018. CPI inflation declined to 4.4 per cent in February 2018 from 5.1 per cent in January 2018.
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 3.0 per cent during January 2018 as compared to growth of 3.5 percent during Jan 2017. During April-Jan 2017-18 Core Sectors grew by 1.5 percent compared to 1.8 percent growth in the corresponding period of previous year.

INDUSTRIAL INDICATORS

Percentage Change in Index of Industrial Production

Industry Group	Apr- Jan 2016-17	Apr- Jan 2017-18	Jan 2017	Jan 2018
General Index	5.0	4.1	3.5	7.5
Mining	4.8	2.5	8.6	0.1
Manufacturing	4.8	4.3	2.5	8.7
Electricity	6.3	5.3	5.1	7.6
Primary goods	5.3	3.7	3.8	5.8
Capital goods	3.0	4.4	-0.6	14.6
Intermediate goods	3.4	2.0	3.3	4.9
Infrastructure/Construction Goods	4.9	4.4	2.6	6.8
Consumer Durables	4.1	-0.3	-2.0	8.0
Consumer Non-Durables	7.7	10.4	9.6	10.5

Reference:

https://dea.gov.in/sites/default/files/MER%20February%202018.pdf

https://rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=43573