Factory output growth for April is 0.1 %, IIP shows

India's industrial production growth sunk to a mere 0.1 per cent in April this year compared to a 5.7 per cent growth in April 2011, the government's Index of Industrial Production (IIP) showed today. The manufacturing sector carries a 75 per cent weight in the index.

Capital goods output declined by 16.3 per cent as against a growth of 6.6 per cent in the same month last year. Mining output contracted by 3.1 per cent as against growth of 1.6 per cent in the same month a year ago. Power generation growth was down to 4.6 per cent as against 6.5 per cent last year.

The rise in factory output at 0.1 per cent is a slight improvement from the figure for March, when it was negative by as much as 3.2 per cent.

The figures once again belie the constant assurances by finance minister Pranab Mukherjee that an economic turnaround is around the corner, and should happen this year.

Commentators say the optimism sounds increasingly hollow as all studies and reports indicate that the Indian economy is sliding rapidly downhill, thanks to a complete paralysis in policy-making.

Rating agency Standard & Poor's on Monday warned that Indian debt was on the verge of being classified as 'junk' unless political roadblocks to policy-making are rapidly cleared.