labels: Industry - general
Industrial production growth plunges to 3.8 per cent in May news
11 July 2008

Mumbai: Industrial growth, measured by the index of industrial production in the country plunged to 3.8 per cent in May, compared with 10.6 per cent a year ago and lower than the previous month`s (revised) growth of  6.2 per cent. The decline in the production index has mainly been due to low growth in the manufacturing and electricity sectors.

The index of industrial production (IIP) grew just 5.0 per cent in the first two months of the current fiscal (April-May 2008-09), against 10.9 per cent during the same period the year before.

Manufacturing growth, which has a weight of 79 per cent, slowed to 3.9 per cent in May this year against 11.3 per cent in the same month last year.

Electricity generation growth also slowed to two per cent against 9.4 per cent in May last year.

Consumer durables growth, however, rose to 4.4 per cent, against negative 0.7 per cent in May last year. Only mining output grew by 5.2 per cent, against 3.8 per cent.

Growth in capital goods production slowed to 2.5 per cent in May from 11.4 per cent in the previous month. The sector had grown by a whopping 22.4 per cent in May 2007.


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Industrial production growth plunges to 3.8 per cent in May