The Hindu Business Line : Industrial output up 11.1% on capital goods growth

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New Delhi Feb. 12 Riding on strong growth in the production of capital goods, the Index of Industrial Production (IIP) grew by 11.1 per cent during December 2006 as against 5.7 per cent in December 2005.

The growth in production of capital goods stood at 20.2 per cent compared with 12.9 per cent while the output of intermediate goods improved by 11.2 per cent (0.9 per cent), according to an official release.

The manufacturing sector registered a growth of 11.9 per cent in December 2006 as against 6.4 per cent in the same month last year followed by the electricity sector that posted a 9.3 per cent growth compared with 3.4 per cent in December 2005.

Production in the basic goods sector improved by 11.7 per cent and consumer non-durables output increased by 8.7 per cent, compared with 5.7 per cent and 6 per cent, respectively.

The growth in the mining sector increased by 3.8 per cent in December 2006 as against a negative growth of 0.1 per cent in the same month last year.

Production of consumer durables, however, decelerated to 3.3 per cent in December 2006 as against a buoyant growth of 12 per cent in December 2005, according to the release.

April-Dec statistics

For the nine-month period of April-December 2006, basic goods output increased by 9.7 per cent, capital goods production by 17.5 per cent, and intermediate goods output improved by11.1 per cent.

Simultaneously, consumer goods output went up by 9.5 per cent. While consumer durables production during the nine months increased by 11.4 per cent, that of consumer non-durables recorded an increase of 8.9 per cent.

The mining sector output during the period increased by 3.9 per cent and manufacturing and electricity sectors registered 11.8 per cent and 7.5 per cent growth, respectively.

The overall increase in the IIP during the April-December period stood at 10.8 per cent as against 8 per cent during April-December 2005, the release stated.