The Hindu : Business : IIP growth leapfrogs to 12 p.c.

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Thursday, Dec 13, 2007
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IIP growth leapfrogs to 12 p.c.

Special Correspondent

Robust performance by the manufacturing sector

NEW DELHI: Belying fears of a slowdown, a robust show by the manufacturing sector buoyed industrial growth to a healthy 11.8 per cent in October this year from 4.5 per cent in the same month a year ago.

In sharp contrast to its dismal performance during the second quarter, the manufacturing sector witnessed an impressive 13.3 per cent growth during the month as compared to a mere 3.8 per cent increase in the same month in 2006.

According to the quick estimates of the Index of Industrial Production (IIP) released by the Central Statistical Organisation (CSO) here on Wednesday, the other two vital sectors, mining and electricity, however, witnessed a deceleration in growth to 3.7 per cent and 4.2 per cent, respectively during the month under reference from 5.9 per cent and 9.7 per cent respectively in the same month a year ago.

Cumulative growth

Partly owing to the poor showing by the mining and electricity sectors, the cumulative industrial growth for the April-October period was slightly lower at 9.7 per cent against 10.1 per cent growth clocked during the same period last year.

Enthused by the turnaround in manufacturing, Finance Minister P. Chidambaram said: “[The industrial production] outlook is encouraging.

However, [the] April-October figure is still slightly lower than last year’s figure for the same period…Let us see, it is only one month’s figure.” The Government would have to wait for the industrial production figures for November, before reaching any conclusion, he said.

Sectoral performance

The sectoral performances for the seven-month period reveal that while the manufacturing sector grew 10.4 per cent as compared to 11.1 per cent during April-October 2006, the mining sector grew by 4.8 per cent (3.6 per cent) and electricity by 7.2 per cent (7.1 per cent).

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