India’s industrial production growth at a slow 1.8 per cent in December

Industrial production in the country expanded at a slow 1.8 per cent in December 2011, down from the 5.9 per cent growth recorded in November, pulled down by a negative growth in mineral production and a slow pace of expansion in manufacturing output. 

The general index of industrial production (IIP) for December 2011 stood at 178.8, a 1.8-per cent growth compared to the level in December 2010, quick estimates released by the Central Statistical Office (CSO) showed.

Electricity generation continued its good performance and provided support to overall IIP growth. Consumer goods sector also provided some support.

However, the continued decline in the production of capital goods and intermediate goods suggests that any sharp up tick in industrial production is unlikely in the near term.

During the first nine months of the current fiscal (April-December 2011-12) industrial production in the country expanded 3.6 per cent compared to the corresponding period of the previous year.

Production indices for the mining, manufacturing and electricity sectors stood at 136.2, 190.7 and 149.8, respectively, in December 2011, with the corresponding growth rates of (-)3.7 per cent, 1.8 per cent and 9.1 per cent.