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 growth seen in manufacturing and infrastructure sectors has led to 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 user industry, machine tool industry is expected to show a 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 per cent. The growth rate of GDP was 7.1 per cent in 2016-17. Industrial Production (IIP): IIP grew by 7.0 per cent in June 2018, as compared to a decline of 0.3 per cent recorded in June 2017. IIP growth during April-June 2018-19 was 5.2 per cent, as compared to growth of 1.9 per cent during corresponding period of previous year. Exports & Imports: The value of merchandise exports and imports increased by 14.3 per cent and 28.8 per cent respectively in US$ terms in July 2018 over July 2017. During July 2018, oil imports increased by 57.4 per cent and non-oil imports increased by 20.2 per cent in US$ terms over July 2017. Wholesale price index: The CPI inflation decreased to 4.2 per cent in July 2018 from 4.9 per cent in June 2018. The WPI inflation increased to 5.1 per cent in July 2018 from 5.8 per cent 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 per cent, 0.5 per cent, 1.4 per cent and 0.1 per cent 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 per cent in July 2018, as compared to 2.9 per cent in July 2017. During April-July 2018-19, the production of eight core industries grew by 5.8 per cent, as compared to the growth of 2.6 per cent 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