Central sector production falls for the fourth month, falls 1.5% in November

NEW DELHI: For the first time in eight years, central sector production fell for the fourth consecutive month. Up to five of the eight sectors covered by the index experienced a contraction. The only positive side was that the rate of decline had slowed, suggesting that the worst could have happened.

But with the sectors together representing more than 40% of the index of Industrial production (IIP), analysts already predict an adverse impact on numbers when they are published in January, denying the improvement seen in some other segments. With an improvement in the performance of a number of main indicators, including the industries of the central sector, automotive production and exports of non-oil products, we expect the IIP to report modest growth in November 2019 after contracting since September 2019, said Aditi Nayar, lead economist at the credit rating agency ICRA.

Los últimos datos publicados por el Ministerio de Comercio e Industria mostraron el martes que la central sector production bajó un 1,5% en noviembre y que solo los productos de fertilizantes, cemento y refinería mostraron un aumento. Otros incluyen carbón, acero, electricidad cruda y natural gas saw a drop in production in the silenced demand. Most disappointing has been the contraction of electricity production in four consecutive months, which is a reflection of the state of the economy Said Devendra Pant, chief economist of India Ratings and Research.

An analysis by CARE showed that some sectors have been contracting for months, indicating a systemic rot that needs several steps to fix the problem. For instance, it said, crude oil production has been contracting for two years, while natural gas output was down for the eighth consecutive month in November. Similarly, coal production was down for the fifth straight month, while steel production declined for the third month in a row.