{
  "id": 2905381,
  "title": "Measuring manufacturing growth afresh: Three questions",
  "url": "https://urgent.news/2026/08/24/measuring-manufacturing-growth-afresh-three-questions",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-24T00:50:45.000Z",
  "source": {
    "name": "The Indian Express",
    "slug": "the-indian-express",
    "url": "https://indianexpress.com/article/opinion/columns/measuring-manufacturing-growth-afresh-three-questions-10846501/"
  },
  "original_language": "en",
  "account": "Three questions regarding Indian manufacturing performance have emerged as the country grapples with the implications of its manufacturing export expansion and government initiatives like Make in India and PLI schemes. First, the manufacturing Gross Value Added (GVA) price deflator has experienced negative growth for nine consecutive quarters, a puzzling trend that does not align with overall price deflation in the economy. Second, there is a significant divergence between real GVA and the Index of Industrial Production (IIP) for manufacturing, with the former outpacing the latter by 15 percentage points in 2025-26. Third, the correlation between real GVA and IIP growth rates has weakened dramatically since 2011-12, contrasting with a strong 0.8 correlation before the 2011-12 methodology changes. These questions are crucial in understanding the performance of India's manufacturing sector and its ability to withstand competition from China and the government's efforts to revitalize the industry.",
  "summary": null,
  "key_points": [
    "Manufacturing GVA price deflator shows negative growth for nine quarters in a row.",
    "Real GVA outpaces IIP by 15 percentage points in 2025-26.",
    "Correlation between real GVA and IIP growth rates weakened since 2011-12."
  ],
  "editors_take": "The divergence between key indicators of India's manufacturing performance raises questions about the sector's true growth and its ability to compete with China and respond to government initiatives.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}