Economy

Poor capital goods growth drags IIP down to 3.7%

PTI New Delhi | Updated on March 11, 2011 Published on March 11, 2011

NEWIIP   -  PTI

Industrial growth has slowed down to 3.7 per cent in January 2011 compared with 16.8 per cent expansion in the year-ago period, dragged down by the poor performance of the manufacturing sector, particularly capital goods.

However, January growth, as measured in terms of the Index of Industrial Production (IIP), was better than the 2.53 per cent expansion (revised upward from 1.6 per cent) witnessed in the previous month.

According to official data release here today, during April-January this fiscal, the growth in industrial output stood at 8.3 per cent against 9.5 per cent during April-January 2009-10.

In January, manufacturing growth plummeted to 3.3 per cent from 17.9 per cent a year ago. Capital goods sector contracted by 18.6 per cent. The sector posted a robust growth of 57.9 per cent in January 2010.

However, production in the consumer non-durables segment grew by 6.9 per cent during the month under review. It had contracted by 7 per cent in the same period a year ago.

Growth in the mining sector also plummeted to 1.6 per cent from 15.3 per cent. Electricity generation output rose 10.5 per cent in January compared with 5.6 per cent growth in the same month last year.

On the whole, 14 out of 17 industry groups achieved positive growth in the first month of 2011.

Published on March 11, 2011
This article is closed for comments.
Please Email the Editor