India's textile and leather industries, with a negative growth of 12.2%, are among the hardest hit sectors according to the August Index of Industrial Production (IIP). Industrial production in India fell 0.8% in August. August's IIP numbers were the lowest in 18 months. The previous low in IIP growth was a 3.2% contraction recorded in February 2021. By July 2022, the PII had increased by 2.2%. By August 2021, the IIP had increased by as much as 13%. (Read more at: economictimes.indiatimes)
Analysis of IIP data revealed that the textile production index fell to 105.5 in August 2022 from 120.2 in August 2021. The cumulative index also fell from 113.8 to 109.3. The sector recorded negative growth of 12.2% in August and 4% in April-August 2022.
The clothing index fell 18.3% to 117.7 in August 2022 from 144.1 in the corresponding period last year. However, the cumulative index managed to register a growth of 26.6 percent to reach 136.2 from 107.6 in August 2021.
The leather goods and leather goods index fell 15 percent to 90.5 percent from 106.5 in the same month last year. The cumulative index grew by 1.7% to 98.3% from 96.7% in August 2021.
IIP confirms sluggish demand and price pressure on the textile value chain. Previously, India's textile industry had faced a shortage of cotton and skyrocketing prices. However, according to industry experts, the demand was better than today. Currently, low demand from domestic and international markets is a critical challenge for the industry.
Manufacturing output fell 0.7% in August 2022 compared to an 11.1% growth recorded in the period a year ago, according to the latest data from the National Bureau of Statistics (NSO).
Mining production fell by 3.9%.
Energy production, on the other hand, increased by 1.4 percent during the month.
In the April-August period of this year, the IIP increased by 7.7% against a growth of 29% in the same period a year ago.
Capital goods production, considered an investment barometer, increased by 5% in August 2022, compared to 20% growth in the same month of the previous year. Consumer durables, on the other hand, fell 2.5 percent from 11.1 percent a year ago.
Commodities, which make up nearly 34 percent of the index, rose 1.7 percent in August.
In the same month a year ago, there was a growth of 16.9 percent in the segment.
Retail inflation data for September was also released today. They showed that the CPI jumped to 7.4% during the month due to rising food prices, particularly vegetable prices which rose by more than 18%.
The food price index stood at 8.6% in September. Cereal inflation rose by 11.53% during the month.
Economists' surveys prior to the data had already set the CPI well above 7% in view of the tightening of food prices.
