Decline In Industrial Growth

• Industrial growth slid into negative territory and is not expected to recover. This is mainly due to a lull in manufacturing, especially of capital goods.
• The contributing reasons are:
  • Reduction in consumer demand
  • High inflation
  • Unaffordable rates on EMIs
• 13 of the 22 industry groups in manufacturing showed negative growth with the steepest decline in ‘Radio, TV and communication equipment and apparatus’ (-) 34.1%, followed by ‘Electrical machinery and apparatus’ (-) 24.6%, ‘Wearing apparel; dressing and dyeing of fur’ (-) 21.3%.

Exams Perspective:

1. What are capital goods ?
2. What is inflation ?
3. What is Index of Industrial Production (IIP) ?
4. What is Central Statistical Organization ?