labels: Industry - general
Industrial production dips 2 per cent in December 2008 news
12 February 2009

The index of industrial production (IIP) in December 2008 stood at 279.1, falling to a negative 2.0 per cent year-on-year against an 8.0 per cent growth recorded in December 2007. 

The cumulative index for the period April-December 2008-09 rose 3.2 per cent over the corresponding period of the previous year, according to quick estimates released by the Central Statistical Organisation of the ministry of statistics and programme implementation.

IIP for December 2008 (with base 1993-94) saw a significant fall in manufacturing output (-2.5 per cent against 8.6 per cent in December 2007) and consumer durables growth (-12.8 per cent versus 2.8 per cent) may have led to the drastic fall.

The November IIP number has also been revised downwards to 1.7 per cent from 2.4 per cent earlier.

Mining, manufacturing and electricity sectors recorded growth rates of 1.0 per cent, (-)2.5 per cent and 1.6 per cent, respectively, for December 2008 with the production index standing at 186.0, 298.6, and 223.1, respectively.

The cumulative growth during April-December 2008-09 over the corresponding period of 2007-08 in the three sectors have been 3.0 per cent, 3.3 per cent and 2.7 per cent respectively, which moved the overall growth in the general index to 3.2 per cent.

In terms of industries, as many as seven out of the 17 industry groups (as per 2-digit NIC-1987) have shown positive growth during December 2008 as compared to the corresponding month of the previous year.

The industry group 'other manufacturing industries' have shown the highest growth of 21.7 per cent, followed by 9.0 per cent in 'beverages, tobacco and related products' and 7.6 per cent in 'metal products and parts, except machinery and equipment'. On the other hand, the industry group 'jute and other vegetable fibre textiles (except cotton)' have shown a negative growth of 66.4 per cent followed by 20.0 per cent in 'wood and wood products; furniture and fixtures'and 17.9 per cent in 'transport equipment and parts'.

As per use-based classification, basic goods recorded a growth rate of 1.7 per cent in December 2008 while capital goods grew at 4.2 per cent and   intermediate goods by -8.5 per cent. Consumer durable and consumer non-durable goods have recorded a negative growths of 12.8 per cent and 0.1 per cent, respectively, with the overall growth in consumer goods being a negative 2.7 per cent.

The the indices for November 2008 have undergone the first revision and those for September 2008 have undergone the second (final) revision in the light of the updated data received from the source agencies.

Indices (first revision) in respect of October 2008 have already been released in January 2009 and these indices shall undergo final (second) revision in March 2009.

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Industrial production dips 2 per cent in December 2008