Press Information Bureau
Government of India
Ministry of Statistics & Programme Implementation

12-October-2017 17:30 IST

Quick Estimates of Index of Industrial Production and use-based Index for the Month of August, 2017 (Base 2011-12=100)

The Quick Estimates of Index of Industrial Production (IIP) with base 2011-12 for the month of August 2017 have been released by the Central Statistics Office of the Ministry of Statistics and Programme Implementation. IIP is compiled using data received from 14 source agencies viz. (i) Department of Industrial Policy & Promotion (DIPP); (ii) Indian Bureau of Mines; (iii) Central Electricity Authority; (iv) Joint Plant Committee, Ministry of Steel; (v) Ministry of Petroleum & Natural Gas; (vi) Office of Textile Commissioner; (vii) Department of Chemicals & Petrochemicals; (viii) Directorate of Sugar & Vegetable Oils; (ix) Department of Fertilizers; (x) Tea Board; (xi) Office of Jute Commissioner; (xii) Office of Coal Controller; (xiii) Railway Board; and (xiv) Coffee Board.

2. The General Index for the month of August 2017 stands at 121.5, which is 4.3 percent higher as compared to the level in the month of August 2016. The cumulative growth for the period April-August 2017 over the corresponding period of the previous year stands at 2.2 percent.
3. The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of August 2017 stand at 92.7, 123.3 and 155.4 respectively, with the corresponding growth rates of 9.4 percent, 3.1 percent and 8.3 percent as compared to August 2016 (Statement I). The cumulative growth in these three sectors during April-August 2017 over the corresponding period of 2016 has been 3.3 percent, 1.6 percent and 6.2 percent respectively.
4. In terms of industries, ten out of the twenty three industry groups (as per 2-digit NIC-2008) in the manufacturing sector have shown positive growth during the month of August 2017 as compared to the corresponding month of the previous year (Statement II). The industry group ‘Manufacture of computer, electronic and optical products’ has shown the highest positive growth of 24.9 percent followed by 16.5 percent in ‘Manufacture of pharmaceuticals, medicinal chemical and botanical products’ and 11.1 percent in ‘Manufacture of other transport equipment’. On the other hand, the industry group ‘Manufacture of furniture’ has shown the highest negative growth of (-) 16.0 percent followed by (-) 15.1 percent in ‘Manufacture of tobacco products’ and  (-) 11.4 percent in ‘Printing and reproduction of recorded media’.
5. As per Use-based classification, the growth rates in August 2017 over August 2016 are 7.1 percent in Primary goods, 5.4 percent in Capital goods,    (-) 0.2 percent in Intermediate goods and 2.5 percent in Infrastructure/ Construction Goods (Statement III).  The Consumer durables and Consumer non-durables have recorded growth of 1.6 percent and 6.9 percent respectively.
6. Some important items showing high positive growth during the current month over the same month in previous year include ‘Meters (electric and non-electric)’ (63.3%), ‘Separators including decanter centrifuge’ (56.6%), ‘Digestive enzymes and antacids (incl. PPI drugs)’ (33.7%), ‘Anti-pyretic, analgesic/anti-inflammatory API & formulations’ (29.6%), ‘Pipes, tubes & casing of steel/ iron’ (27.4%), ‘Axle’ (26.0%), ‘Telephones and mobile instruments’ (23.2%) and  ‘Full-cream/ Toned/ Skimmed milk, whether or not chilled’ (22.4%).
7. Some important items that have registered high negative growth include ‘Anti-malarial drug’ [(-)68.4%], ‘Jewellery of gold (studded with stones or not)’ [(-) 46.0%], ‘Plastic jars, bottles and containers’ [(-) 42.0%], ‘Tooth Paste’         [(-) 39.9%], ‘Other tobacco products’ [(-) 38.2%], ‘Electrical apparatus for switching or protecting electrical circuits (e.g switchgear, circuit breakers/switches, control/ meter panel)’ [(-) 33.7%] and ‘Palm Oil refined (including Palmolein)’ [(-) 29.3%].
8. Taking into account the weights, the dominant item groups (five each) which have positively and negatively contributed to the overall growth of IIP are given below:

Item Group

9. Along with the Quick Estimates of IIP for the month of August 2017, the indices for July 2017 have undergone the first revision and those for May 2017 have undergone the final revision in the light of the updated data received from the source agencies.

10. Statements giving Quick Estimates of the Index of Industrial Production at Sectoral, 2-digit level of National Industrial Classification (NIC-2008) and by Use-based classification for the month of August 2017, along with the growth rates over the corresponding month of the previous year including the cumulative indices are enclosed.

Note: –

1. This Press release information is also available at the Website of the Ministry – http://www.mospi.nic.in
2. Release of the index for September 2017 will be on Friday, 10 November 2017.
3. Press release in Hindi follows and shall be available at: http:// mospi.nic.in/hi

The railway ministry has asked its senior staff to slug it out — at home and at work — as part of steps to end the VIP culture in India’s national transporter.

In an unprecedented move, the ministry has brought to an end a 36-year-old protocol where it was mandatory for general managers to present themselves on arrival and departure of the Railway Board chairman and other board members during zonal visits.

As part of a massive overhaul of the culture of privilege prevalent in the ministry, the Railway Board has decided to do away with the instructions of a 1981 circular that mandated such protocol.

In an order on September 28, the ministry said that the instructions and guidelines issued to the railways regarding the protocol to be observed at airports and railway stations during the visit of the Railway Board chairman and other board members stand withdrawn with immediate effect.

Railway Board chairman Ashwani Lohani said no official will entertain bouquets and gifts at any time.

However, it’s not just in the office that senior officials of the national carrier have to exercise restraint, but also at home. All senior officials have to relieve all the railway staff who have been engaged as domestic help in their homes.

Officials say that around 30,000 trackmen work at the homes of senior officials. They have been asked to resume duties. Sources in the ministry say that in the past one month around 6,000-7,000 personnel have reported back to work.

“No one will be exempt from the directive to rejoin work except under very special circumstances. We are hoping that all the staff will join work shortly,” a senior official of the ministry said.

Railway Minister Piyush Goyal has also asked senior officials to give up travelling in cosy saloons and executive class travel privileges and start travelling in Sleeper and AC Three-tier classes, mingling with other passengers.

These include members of the Railway Board, general managers of railway zones and divisional railway managers in each of the 50 divisions.

“I believe that when these protocols were in place, people drafting them would have seen some reasoning behind them. It is difficult for me to say what they were though. However, now, these have no logic.

“Also, there is a tendency in public organisations to not review protocols which have become archaic, but remain part of the dos and don’ts for officials. They should be reviewed on a regular basis,” said a former railway board member who didn’t want to be quoted.

Source: http://economictimes.indiatimes.com/industry/transportation/railways/cultural-overhauling-railways-changes-36-year-old-practice-to-end-vip-culture/articleshow/60991513.cms

For the first time, Indian Railways has rolled out a 100% ‘Make in India’ LHB (Linke-Hofmann-Busch) coaches, with each and every component made in the country.

Prime Minister Narendra Modi’s dream ‘Make in India’ project just got a boost from Indian Railways! For the first time, Indian Railways has rolled out 100% ‘Make in India’ LHB (Linke-Hofmann-Busch) coaches, with each and every component made in the country. Manufactured at ICF (Integral Coach Factory) at Chennai, the ‘Make in India’ the coaches have been allotted to Western Railways. The technology for making modern coaches was acquired by Indian Railways from Linke-Hofmann-Busch, Germany back in 1995. However, till now even though the coaches were made and assembled here, some components were imported.

“Coach No. LACCN 111 and LSDD 166 with 100% indigenous content was flagged off after inspection from Member Rolling Stock of the Railway Board,” an ICF official told FE Online. Out of the two ‘Make in India’ coaches that have been rolled out by ICF, the non-AC one has 100% indigenous components. The AC coach has one imported component. “The non-AC coaches are fitted with wheel disc manufactured at Rail Wheel Factory at Bangalore. The AC coach has an imported wheel that has been assembled at ICF with some value added component,” the ICF official said.

Asked about how soon the AC coaches will also have 100% indigenous components, the official said, “Member Rolling Stock has said that talks are on with local manufacturers. We should be able to zero in on someone soon. Once that happens, the AC coaches too will have all indigenous components.”

Given the spate of rail accidents over the last year, Indian Railways has decided to stop production of traditional ICF coaches in 2017. Now, ICF Chennai will make only LHB coaches. LHB coaches boast of stainless steel bodies and have anti-climbing features. This ensures that in case of a derailment, the coaches do not pile onto each other, hence making them safer. The LHB coaches also have a graduated release modular braking system the axle mounted disc brakes.

But, will all of them be 100% ‘Make in India’? Not yet, that’s a gradual process, says the ICF official. “We have been asked to almost double our production of LHB coaches, so 100% ‘Make in India’ will take some time to be absorbed completely,” he says, adding that focus is on meeting the twin goals of safety and ‘Make in India’.

Meanwhile, ICF is also working on project ‘Train-2018’ – a technological leap for the coach factory under which ‘Make in India’ self-propelled train sets will be manufactured. The ‘first of its kind’ semi-high speed self-propelled train set has been proposed for inter-city superfast travel.

Source: http://www.financialexpress.com/india-news/indian-railways-lhb-coaches-make-in-india-icf-chennai-pm-modi-safety/884946/

Core sector growth rebounded to a five-month high in August while manufacturing activity expanded for the second month running in September, providing some cheer for an economy that saw growth touch a three-year low in the June quarter. The data would have been factored in by the monetary policy committee ahead of the Reserve Bank of India announcing the policy on Wednesday.

he core sector, comprising eight infrastructure segments, saw a 4.9% rise in output in August compared with 2.6% in July, data released by government showed. To be sure, the growth was driven largely by a sharp rise in coal and electricity output and wasn’t evenly spread. Crude oil, cement and fertiliser declined. The core sector grew 3.1% in August last year.

Increases in both output and new orders helped the manufacturing sector remain in the expansion zone with the Purchasing Managers’ Index (PMI) coming in at 51.2 in September, the same as August. A reading above 50 on the index indicates expansion.

The data will cheer the government following the criticism it faced over economic management after growth declined to 5.7% in the April-June period, triggering a downgrade in growth forecasts for FY18 to below 7% and calls for a fiscal stimulus.

“September data painted an encouraging picture as the sector continued to recover from the disruptions caused by the introduction of the goods and services tax (GST) in July,” said Aashna Dodhia, economist at IHS Markit and author of the PMI report.

The two sets of data point toward positive news on industrial production for August, said independent economists. Factory output, as measured by the Index of Industrial Production (IIP), rose just 1.2% in July. The core sector has a near 40% weight in IIP.

“Given the weight of around 40% in IIP, this number should translate into a higher number growth for the month with the destocking process getting reversed and could be in the range of 2-3%,” said Madan Sabnavis, chief economist at CARE Ratings. The improvement in core sector output as well as automobiles along with the PMI reading portend an uptick in industrial growth, said ICRA principal economist Aditi Nayar.

“Given the favourable base effect and the expected rebuilding of inventories prior to the festive season, we expect the IIP growth to improve in August relative to the initial estimate of 1.2% for July,” she said.

However, IHS Markit downgraded its real GDP growth for India to 6.8% in FY18 from 7.3% previously as the lingering effects of recent economic shocks continue to cast a shadow on growth, according to Dodhia. The government sees the slowdown as temporary, caused due to the combined effect of demonetisation and disruption owed to the launch of the goods and services tax (GST) on July 1.

Infra Grows The spurt in coal and power obscured drops in other segments. Despite August being a monsoon month, coal production was at a 33-month high of 15.3%, aided by a favourable base effect and less rain in the coal-producing states of central India.

Electricity output rose to a 16-month high of 10.3% in August. However, crude oil, fertiliser and cement production declined 1.6%, 0.7% and 1.3%, respectively, in August. Steel posted 3% growth.

Source: http://economictimes.indiatimes.com/news/economy/indicators/-output-of-eight-core-industries-rises-in-august/articleshow/60926080.cms

The government will “very soon” float a global tender to procure tracks for modernising the railways, which can create a million jobs within a year through various areas across its ecosystem, Union Minister Piyush Goyal said today.

He further said that safety will be priority for the railways and there would be no limit to funding it.

The comments of the new railways minister come after a spate of rail accidents in the last few month leading to loss of lives.

“I have diverted all available tracks to track renewal so that we can make the existing tracks safer. We are looking to go in for global procurement of rail tracks…this will help fast track the doubling of lines and new projects,” he told reporters at the India Economic Summit of the World Economic Forum (WEF).

Asked by when the global tender for tracks modernisation would be floated, Goyal said “very soon, it’s under process”.

“There is no limit to safety expenditure. Safety will be the priority of Indian railways. I have also categorised pedestrian foot-over bridges, platforms, entry and exit points as safety items.

“I have turned around 100 year old tradition which used to consider all of this as amenities,” he said.

He further said that monetising the real estate assets as well as fast tracking some of the existing investment plans would generate a lot of employment opportunities in the railways and the ecosystem around it.

“My own sense is, may not be directly jobs in railways, but certainly through engaging people and working in variety of areas across the ecosystem, not less than a million jobs can be created in less than 12 months — only railways and ecosystem around the railways,” Goyal said.

The government’s moving aggressively on the rail track and safety maintenance programme alone would create 2 lakh jobs, he added.

Besides, leveraging the amount of railway real estate by monetising those assets will help to generate resources without burdening passengers.

“If I look at the amount of investment in pipeline and activate that, it will create 2-2.5 lakh jobs in existing projects,” Goyal said.

He said India has huge investment potential but a change in mindset is required to transform the country.

Goyal said that with sectors like coal, power showing turnaround, it’s the turn of the railways now.

On the need for the country rebranding itself, he said the narrative of India is changing.

“Over the years India was well known for yoga, Ayurveda, cricket or Bollywood. Narrative is changing, Brand India is being built. India is being now recognised as a country which is honest in its dealings, where technology drives growth,” Goyal said.

Stating that megastructures cannot be built on a weak foundation, he said if India has to prepare itself for global challenges of tomorrow, there is a need to develop a framework that will ensure decades of prosperity.

“I think there is no better place in the world today to invest in, no larger market than the Indian market and there is no pole which is going to be more important than India,” he said.

Source:  http://economictimes.indiatimes.com/industry/transportation/railways/rail-ecosystem-can-create-10-lakh-jobs-in-a-year-piyush-goyal/articleshow/60955305.cms

In view of growing consumer complaints against increase in banking charges, the State Bank of India – India’s largest commercial bank – on Monday revised the service charges for non-maintenance of monthly average balance (MAB) in bank accounts and also lowered the MAB requirement for its customers in metro cities. Pensioners and minors have also been exempted from the minimum balance requirement. Here are five things to know about how the SBI customers will benefit from this development:

1. The requirement for minimum average balance in metro centres now stands reduced to Rs 3,000 from Rs 5,000 earlier, similar to the requirement in urban centres.

2. For non-maintenance of MAB, the charges have been revised downward ranging from 20% to 50% across all population groups and categories. The charges at semi-urban and rural centres range from Rs 20 to Rs 40 and at urban and metro centres from Rs 30 to Rs 50. The revised MAB requirement and charges will become applicable from the month of October 2017.

3. Accounts of pensioners, minors and beneficiaries of social benefits from the government have been exempted from the minimum balance requirement. This is in addition to the already exempted categories under PMJDY accounts and Basic Savings Bank Deposits Accounts (BSBD).

4. The following categories of savings bank accounts are excluded from the minimum balance requirement:
i) Financial Inclusion Accounts
ii) Basic Savings Bank Deposit Accounts
iii) Small Accounts
iv) Phela Kadam and Pheli Udaan accounts.
v) Minors up to the age group of 18 (Primary Account Holder)
vi) Pensioners, all categories, including recipients of social welfare benefits

5. SBI has a very strong deposit franchise having 42 crore savings bank accounts, out of which 13 crore accounts under PMJDY / BSBD were already exempted. The above revision is likely to benefit another 5 crore account holders. SBI customers also have the option of converting the regular savings bank account to Basic Savings Bank Deposits (BSBD) account, free of charge, in case they desire to avail basic savings bank facilities without being subject to maintain minimum average balance.

Source: http://www.financialexpress.com/money/sbi-minimum-balance-rule-tweaked-monthly-average-balance-limit-slashed-to-just-rs-3000-5-things-you-must-know/871157/