India’s industrial output rises 0.7% in September: Govt

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Industrial production grew a meagre 0.7% in September mainly due to poor show by manufacturing and mining sectors coupled with decline capital goods output.

The factory output for the April-September period of the current financial year declined by 0.1% compared to 4% growth in the year-ago period, as per the data released by Central Statistics Office today.

Factory output, as measured in terms of the Index of Industrial Production (IIP), had grown by 3.7% in September last year.

The manufacturing sector, which constitutes over 75% of the IIP index, recorded a low growth of 0.9% in September compared to 2.7% growth a year ago.

In terms of industries, 12 out of 22 groups in the manufacturing sector showed positive growth in September.

The capital goods output registered a steep decline of 21.6% in the month against a growth rate of 10.1% in last year.

The mining sector recorded a contraction of 3.1% in September as against a growth of 3.5% a year ago.

Power generation recorded a growth of 2.4% in September compared to 11.4% growth in the same month a year ago.

Growth in output of consumer durables went up to 14% in September compared to 8.5% growth a year ago. The consumer non-durable goods output grew 0.1% in September as against 3.6% contraction a year ago.

Overall, consumer goods production recorded a growth 6% in September compared to 1.2% growth a year ago.

As per use-based classification, the growth rates in September 2016 over September 2015 are 4% in basic goods and 2.2% in Intermediate goods.

For the April-September period, manufacturing sector’s output showed contraction by 0.8%, as against a growth of 4.2% a year ago.

Production of capital goods, which are considered as barometer for investment, declined by 21.4% in the six-month period compared to a growth of 7.8% in year ago period.

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