IIP growth dips down to 1.9 per cent in September 2011

11 November 2011: Continuing its dismal performance, industrial growth fell further to 1.9 per cent in September, mainly due to poor output from the manufacturing sector. Growth in factory output, as measured in terms of the Index of Industrial Production (IIP), stood at 6.1 per cent in September last year, as per the latest data released here. During the April-September period this fiscal, IIP growth stood at 5 per cent, as against 8.2 per cent in September 2010.

Meanwhile, the IIP growth figure for August 2011 has been revised downward to 3.59 per cent from the provisional estimate of 4.1 per cent.Output of the manufacturing sector, which constitutes over 75 per cent of the index, grew by only 2.1 per cent in September, compared to 6.9 per cent expansion in the same month last year.

Mining output declined by (-)5.6 per cent in September 2011 as against a growth of 4.3 per cent in the september 2010. Capital goods production witnessed negative growth of (-)6.8 per cent in September in comparison to a growth of 7.2 per cent in the corresponding month of 2010.

Growth in production of intermediate goods slowed to 1.5 per cent during the month under review from 4.6 per cent in September, 2010. Consumer non-durables output declined by (-)1.3 per cent during the month in comparison to a growth of 5.8 per cent in the corresponding month of 2010. However, electricity production improved, witnessing a growth of 9 per cent in September 20111, as against growth of a mere 1.8 per cent in September, 2010.

Source: DNA