India’s industrial production contracted 1.8% in October
12 Dec 2013
India's industrial production contracted 1.8 per cent in October 2013, for the first time in four months, showing signs that economic recovery remains fragile.
Industrial production, measured by the index of industrial production (IIP), with base (2004-05=100) stood at 168.5 in October 2013, down 1.8 per cent compared to the level in October 2012.
The cumulative growth of industrial production during April-October 2013-14 over the corresponding period of the previous year stood at 0.0 per cent.
Indices of industrial production for the mining, manufacturing and electricity sectors registered growth rates of (-) 3.5 per cent, (-)2.0 per cent and 1.3 per cent, respectively, in October 2013. The cumulative growth rates for the three sectors during April-October 2013-14 over the corresponding period of 2012-13 has been (-)2.7 per cent, (-)0.3 per cent and 5.3 per cent, respectively.
Manufacturing sector, which accounts for about 76 per cent of industrial production, contracted 2 per cent from a year earlier, data released by the Central Statistics Office (CSO) showed.
Capital goods production, a barometer for investments in the economy, grew 2.3 per cent year-on-year in October 2013.
A slump in core sector output, which includes coal, electricity, cement, crude oil and steel, also affected the general index of industrial production.
Output in core sector industries, which account for more than a third of overall factory production, fell 0.6 per cent in September, data released earlier showed.
Ten out of the 22 industry groups in the manufacturing sector have shown negative growth during October 2013 compared to the corresponding month of the previous year.
Basic goods production declined by 1.6 per cent in October 2013, while capital goods production rose 2.3 per cent and production of intermediate goods increased by 1.8 per cent.
