The Hindu Business Line : Manufacturing drives IIP up 11.8% in Oct

New Delhi, Dec. 12 Driven by the growth of the manufacturing sector the industrial growth rate in October grew by 11.8 per cent from 4.5 per cent a year ago.

According to the Index of Industrial Production (IIP) data released by the Government on Wednesday, the manufacturing sector saw an impressive growth rate of 13.3 per cent during the month as against 3.8 per cent during October 2006.

The mining and electricity sectors showed a decline in growth to 3.7 per cent and 4.2 per cent respectively. In the corresponding month last year the mining sector had shown a growth rate of 5.9 per cent and 9.7 per cent respectively.

The output of the consumer goods sector, which had declined by 2.8 per cent in October 2006, registered a growth of 12.5 per cent. Within the consumer goods sector, the consumer durables segment showed a growth of 9.3 per cent, while output of consumer non-durable items went up by 13.9 per cent.

Growth rate

According to the IIP figures the growth rate of the basic goods decelerated to 6.2 per cent in October this year from 10.5 per cent in the corresponding month last year. The performance of intermediate goods was, however, up to 14.2 per cent from 5.9 per cent in October 2006.

The cumulative industrial growth from April-October period was marginally down to 9.7 per cent from 10.1 per cent during the corresponding period last year.

With regard to the sectoral performance for the seven-month period, manufacturing grew by 10.4 per cent as against 11.1 per cent during the same period last year. The mining sector grew by 4.8 per cent from 3.6 per cent and electricity grew by 7.2 per cent as compared to 7.1 per cent in the corresponding period last year.

As per the use-base, classification of the IIP revealed that capital goods segment recorded a robust growth of 20.5 per cent during October as compared to a low growth of 6.5 per cent during the corresponding month last year.

Consumer goods sector

However, the 9.3 per cent monthly growth in consumer durables did not help the sector show a positive growth during the April-October period.

The consumer durables sector during the seven-month period showed a negative growth of 1.3 per cent as compared to a healthy growth of 12.7 per cent during the corresponding period last year. The cumulative growth of consumer goods sector during April-October worked out to be 6.4 per cent as compared to 9.3 per cent during the corresponding month last year.

There was, however, cheerfulness in the capital goods segment, which grew by 20.1 per cent as compared to 15.7 per cent during April to August 2006.

In terms of the two-digit NIC classification of the industries, 16 out of 17 industrial segments showed positive growth in October. The only industrial segment which showed a negative growth was metal products and parts, except machinery and equipment.

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