The Hindu Business Line : Industrial production index up 0.8% in Jan

Report card
Index of industrial production for 10-month period (April-Jan 2005-06) was 8 pc (8.4 pc in April-Jan 2004-05).
During January, manufacturing and electricity sectors grew; mining sector growth dipped.
Capital sector goods growth increased in January; consumer non-durables fell.

New Delhi , March 17

The overall Index of Industrial Production (IIP) increased by 0.8 per cent to 8.3 per cent in January this year compared to 7.5 per cent in the corresponding month last year, thereby reversing the cumulative negative growth trend registered during the first 10-month period of the current fiscal.

CUMULATIVE GROWTH

The overall cumulative growth in the IIP for the period April 2005 to January 2006 stood at 8 per cent, down 0.4 per cent compared to 8.4 per cent during the first 10-month period of last fiscal.

Though the mining sector registered negative growth in January, the index was pulled up by improved performance in the manufacturing and electricity sectors.

During January, manufacturing and electricity sectors grew by 9.2 per cent and 5.8 per cent, respectively, against 8.6 per cent and 2.4 per cent registered in January 2005. Growth in the mining sector slowed down to 0.2 per cent against 2.6 per cent in the corresponding month last year.

Among the other sectors, except consumer non-durables every other sector showed substantial improvement in performance in January this year.

Capital goods

In the capital goods sector, production in January increased by a whopping 26.3 per cent against 8 per cent in the corresponding month last year, indicating huge order book positions for the capital goods manufacturers which would result in higher growth in manufacturing activities in the coming months.

On the other hand, production growth in consumer non-durable goods fell from 16.7 per cent in January 2005 to 5.7 per cent in January this year indicating the slackness of post-festive season and slowing down of demand growth for white goods in the established urban markets.

Production of basic goods, intermediate goods and consumer durables grew by 6.7 per cent, 4.6 per cent and 12.4 per cent, respectively, in January against 4.7 per cent, 1.6 per cent and 10.3 per cent in the corresponding month last year.