IIP data down in Apr; growth in manufacturing may take some time to pick, says industry

New Delhi, June 11 (KNN) A contraction in manufacturing output dragged industrial production growth down in April, rekindling concerns if a turnaround has indeed taken place.

Exports during April, 2016 were valued at US$ 20568.85 million (Rs.136720.11 crore) which was 6.74 per cent lower in Dollar terms (1.21 per cent lower in Rupee terms) than the level of US$ 22054.72 million (Rs.138400.44crore) during April, 2015.

Non-petroleum exports in April 2016 are valued at US$ 18589.27 million against US$ 19299.56 million in April 2015, a reduction of 3.68 per cent.

The trend of falling exports is in tandem with other major world economies. The growth in exports have fallen for USA (3.87 per cent), European Union (0.04 per cent), China (25.34 per cent) and Japan (1.10 per cent) for February 2016 over the corresponding period of previous year as per WTO statistics.

On the other side the imports during April, 2016 were valued at US$ 25413.72 million (Rs.168923.71 crore) which was 23.10 per cent lower in Dollar terms and 18.54 per cent lower in Rupee terms over the level of imports valued at US$ 33047.02 million (Rs.207380.63 crore) in April, 2015.

Harshavardhan Neotia, President, FICCI said “The manufacturing sector performance is on the expected lines as predicted by FICCI survey too last month. The growth in manufacturing may take some more time to pick up as the measures taken by the Government in the last few months start yielding results”.

“There is an unfinished agenda of the reforms which the present Government is trying to address. The manufacturing sector growth is dependent on many other factors too like the overall demand scenario in the economy which needs to be further encouraged” said Neotia.

Taking merchandise and services together, overall trade deficit for April- March, 2015-16 was estimated at US$ 48869.16 million which is 20.03 percent lower in Dollar terms than the level of US$ 61107.40 million during April - March 2014-15. (KNN Bureau)