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IIP growth sinks to 7.8 per cent in FY11
13 May 2011: Poor performance by manufacturing and mining sectors pulled down the industrial growth rate to 7.8 per cent in 2010-11, even as in March it put up a good show which, the government said, reflected a "turnaround".
Factory output, as measured in terms of the Index of Industrial Production (IIP), showed a growth of 7.8 per cent in the last fiscal against 10.5 per cent in 2009-10. In the last month of the fiscal, industrial growth, however, put up a good performance at 7.3 per cent, up from 3.6 per cent in February 2011. The growth in March was the best show since October, 2010.
Growth in factory output had remained abysmally low at below 4 per cent for four consecutive months from November. It stood at 2.7 per cent in November, 2.5 per cent in December, 3.95 per cent in January and 3.6 per cent in February. The IIP growth has been very slow during these months, mainly due to a slowdown in manufacturing, which contributes to almost 80 per cent of the index. The last time before March IIP registered an impressive growth was in October 2010 when it clocked 11.29 per cent.
The rebound in March has proved the projections by experts wrong. It has also taken away the spotlight from the low overall growth during the last fiscal. The March number is, however, lower compared to the 15.5 per cent growth reported in the same month of 2010. But given the high base, it is still considered a pretty good show.
Source: DNA