labels: Industry - general
India's manufacturing output shrinks for first time in 15 years news
12 December 2008

Manufacturing output in the country registered its first fall in 15 years (since 1993), with the ''quick estimates'' of the index of industrial production (IIP) for October in fiscal 2008-09 falling to 261.5 points, down 0.4 per cent compared to the level in the same month of the previous year, official figures showed.

Cumulative growth in production for the period April-October 2008-09 stood at 4.1 per cent compared to the same period in the previous fiscal (2007-08), according to figures provided by the Central Statistical Organisation  under the ministry of statistics and programme implementation. 

The index of industrial production stood at 5.45 per cent in September, and 12.2 per cent a year ago.

Manufacturing sector registered negative growth at 276.9 points (-1.2 per cent) while production in mining sector was up 2.8 per cent at 174.4 points and electricity generation rose 4.4 per cent at 231.2 points, compared to the same period of the previous year.

Cumulative growth in the three sectors for the April-October 2008-09 period over the corresponding period of 2007-08 were 4.2 per cent, 3.7 per cent and 2.8 per cent, respectively, which moved the overall growth in the General Index to 4.1 per cent.

Manufacturing sector, which accounts for 80 per cent of the index, declined 1.2 per cent against a growth of 13.8 per cent in the year-ago period.

In terms of industries, as many as seven out of the seventeen industry groups have shown positive growth during October 2008 as compared to the corresponding month of the previous year.

The industry group 'Other Manufacturing Industries' showed the highest growth at 11 per cent, followed by 'Beverages, Tobacco and Related Products' (7.5 per cent) and 'Paper & Paper Products and Printing, Publishing & Allied Industries' (5.4 per cent).

On the other hand, the industry group 'Leather and Leather & Fur Products' showed a negative growth (-18.1 per cent) followed by 'Wood and Wood Products: Furniture and Fixtures' (-14.4 per cent) and 'Cotton Textiles' (-9.6 per cent).

Under use-based classification, 'basic goods' production rose 2.7 per cent and `capital goods'  production by 3.1 per cent while production of `intermediate goods' showed negative growth (-3.7 per cent). Capital good output grew 20.9 per cent in October 2007.

Consumer durables and consumer non-durables have recorded growth of -3.0 per cent and -2.0 per cent, respectively, while the overall growth in consumer goods stood at -2.3 per cent.

September IIP was, however, revised to 5.45 per cent versus 4.65 per cent reported earlier. In August 2008, the industrial output fell to 1.42 per cent.

The Index for Industrial Production numbers for the seven-month period ended October was 4.1 per cent against 9.9 per cent a year ago.


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India's manufacturing output shrinks for first time in 15 years