Industrial production records marginal growth

Overall industrial production of the country witnessed a marginal increment of 0.19 percent during the last fiscal year, thanks to worsening investment climate and energy crisis that rocked the country last summer. According to Manufacturing Production Index (MPI) disseminated by the Central Bureau of Statistics, the decline seen in the production of vegetable ghee and oil that holds the largest weight of 15.78 percent in the MPI was one of the major factors that dragged down the whole index. Shrinking export volume to Indian markets, which alone captures over 10 percent weight, due to eroding competence along with decline in the production of mustard oil were mainly responsible for the decline.

Likewise, the manufacturing of chemical products like medicine and soap recorded also declined by 3.78 percent, with a surprising shrink of 5.22 percent in the production of medicine. The production of soap also reduced by 0.83 percent during the period as compared to same period last year. However, the production of rice, flour and animal feed, which in combine commands 8.16 percent weight, recorded an encouraging 6.70 percent rise as compared to 3.5 percent recorded last year. The production of rice and wheat flour increased by 6.15 and 4.44 percent respectively as compared to the production figures of last year. Likewise, the production of other food products, mainly biscuits and noodles, increased by 5 and 10 percent, while the production of processed tea -- that has a bright export prospect, saw a marginal increase of two percent.

Manufacturing of beverage item recorded another healthy increase of 7.67 percent, propelled mainly by the rise in the production of beer and soft drinks that remained at 9.85 percent and 14.35 percent respectively. However, the production of readymade garments that holds 7.14 percent weight in the MPI, registered a whopping decline of 12.03 percent, while manufacturing of another oversea export heavyweight, woolen carpet, tumbled by 10.75 percent. Surprisingly, the production of pashmina products, which once had emerged as a potential export item, reversed years-long decline and witnessed a growth of 5.78 percent during the last fiscal year. The period also witnessed an increment of 3.85 percent in the production of newspapers, while the production of cement, a major input for booming construction industries, saw a decline of nearly 10 percent. In the like manner, domestic metal production declined by almost 10 percent during the period, despite the boom in the housing and construction sector.
Source:Republica