The Hindu Business Line : Industrial production grows 2.4% in Nov

Industrial growth bounced back to the positive zone in November 2008 with the Index of Industrial Production (IIP) registering a growth of 2.4 per cent during the month as compared to a negative growth of 0.4 per cent in October 2008.

However, the rate of growth is still lower compared to 4.9 per cent recorded in November 2007.

Electricity generation showed a growth of 3.1 per cent during November 2008 as against 5.8 per cent in November 2007 while the manufacturing sector output was 2.4 per cent as against 4.7 per cent in the corresponding month last fiscal.

Mining sector output saw a growth of 0.5 per cent in November as against 6.3 per cent in the corresponding month of the preceding fiscal.

For the eight-month period of April-November 2008, the IIP registered a growth of 3.9 per cent, much lower compared to 9.2 per cent during the same period of the previous fiscal.

In terms of industries, 10 out of 17 industrial groups recorded positive growth in November 2008 as compared to the corresponding month of the previous fiscal.

Production of basic goods grew by 2.3 per cent in November as against 5.2 per cent in the same month last year.

However, production of capital goods registered a negative growth of (-)2.3 per cent during the month as against a positive growth of 24.2 per cent in the same month last year.

Production of consumer durables also receded by (-)4.2 per cent in November 2008 as against (-)5.5 per cent in November 2007. However, the consumer non-durable sector registered a positive growth of 7.3 per cent during the month as against a negative (-)2 per cent recorded in the same month of the previous fiscal.

Overall, the consumer goods sector grew by 4.4 per cent in November 2008 showing a marking a substantial improvement compared to a negative (-)2.9 per cent in November 2007.

Production of intermediate goods improved by 2.6 per cent in November compared to 5.5 per cent in the corresponding month of the previous fiscal.

Commenting on the latest IIP figures, the Minister for Commerce and Industries, Mr Kamal Nath, said that “I think this is a trend and I hope in December we will continue with the trend.”

The Minister also said that the Government is considering another relief package to further stimulate the economy.

“We are looking at perhaps another relief package for these sectors that will give them a level playing field in the global markets. On January 21 a meeting has been called with all the councils like the Federation of Indian Exports Organisation (FIEO) and others to again have a look at how they have responded to an earlier package and what more needs to be topped up,” Mr Nath said.

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