IIP Sept: India Industry Growth Slows to 1.9%
Amid worsening debt crisis in European Union added by tight monetary policy adopted by country’s central bank India’s industrial growth touched new low of 1.9% in month of September 2011 year on year, Index of Industrial Production (IIP) data released by the Central Statistics Office of the Ministry of Statistics and Programme Implementation showed today.
In August 2011, country’s industry grew by 3.6% (revised) and in July it was at 3.8%.
The IIP data showed that in first six months (April-September) of fiscal 2011-12 industry grew 5.0% as over the corresponding period of 2010-11.
The Reserve Bank of India hiked key policy rates 13-times since March 2010 to tame the inflation, which is hovering around 10% in past few months. Successive liquidity control measure made it difficult for industry to mobilize fund in short term.
The manufacturing sector in the month of September 2011 grew by 2.1% on year, in August it was at 4.5%, signalling further slowdown in coming months. In April-September period manufacturing sector grew by 5.4% as compared to corresponding period of last fiscal.
Mining sector recorded a negative growth of 5.6% in September 2011 on year, and during first half of the current fiscal it grew by (-) 1% as compared to same period last fiscal. Electricity production in the country grew by 9% in September on year and in first half it stood at 9.4%.
Based on use-based classification, basic goods industry grew by 4.5% in September 2011 as compared to same month last fiscal, capital goods industry recorded a negative growth of 6.8% on year in the September 2011 and intermediate goods grew marginally by 1.5% in the reporting period.
Consumer goods industry grew by 3.5% in September 2011 over the same month last fiscal, with consumer durables growth at 8.7% in the month and consumer non-durables at (-) 1.3%.
October trade data also showed sign of slowdown, with just 10.8% export growth in the month at $19.9 billion. In September, India’s export grew 36%.