IIP hits negative growth of 0.1 per cent in November

Industrial production in the country contracted to a four-month low, hitting a negative (-) 0.1 per cent in November 2012 against an 8.3 per cent growth recorded in October 2012, quick estimates provided by the Central Statistics Office (CSO) showed.

The level of output based on the index of industrial production (IIP) declined 0.1 per cent in November 2012 compared with the level in November 2011, due to a substantial fall in mining output and the slow pace of production in the manufacturing and electricity sectors.

IIP for November 2012 stood at 167.3, which was 0.1 per cent lower compared to its level in November 2011.

Cumulative growth for April-November 2012-13 year-on-year was also at a low 1.0 per cent.

The sagging industrial production should prompt the Reserve Bank of India (RBI) to think in terms of lower interest rates in its quarterly review of monetary policy slated for 29 January.

Production in the mining, manufacturing and electricity sectors grew at (-) 5.5 per cent, 0.3 per cent and 2.4 per cent, in November 2012 with corresponding indices of 121.7, 178.3 and 149.1, respectively, during November 2012.