industrial growth has declined by 270 basis points as
compared to the previous month, on account of a marginal
decline in mining output and a deceleration in electricity
output growth. The decline in growth rates has raised
hopes that the RBI may decide to keep interest rates steady
at its meeting by the end of this month.
of Industrial Production (IIP) for the month of August
2006 has increased 9.7 per cent from the same month of
previous year, according to quick estimates released by
the Central Statistical Organisation. Though industrial
growth for the month is lower than 12.4 per cent reported
for July 2006, it is better than 7.6 per cent achieved
for the same month of previous year.
growth for the first 5 months of the current financial
year remains at 10.6 per cent, 190 basis points higher
than 8.7 per cent achieved for the same period of previous
modest decline in growth as compared to the previous month
was on account of a marginal 0.1 per cent decline in mining
output as against an impressive growth of 6 per cent for
July 2006. For the April-August period, mining output
growth at 3.1 per cent is much better than 1.6 per cent
for the same period of last year.
generation also saw a deceleration in growth to 3.7 per
cent for the month as compared to 8.6 per cent for July
2006 and 7.9 per cent for August 2005. For the April-August
period, electricity output growth has declined marginally
to 5.7 per cent from 6 per cent for the same period of
continues to drive growth, with output expanding 11.1
per cent after the scorching growth of 13.3 per cent during
the pervious month. Manufacturing growth was at a lower
8.5 per cent during August 2005. For the first 5 months
of current year the sector has clocked a growth rate of
11.8 per cent as against 9.6 per cent for the same period
of previous year.
of capital goods increased 14.7 per cent for the month
after expanding 15.4 per cent during the previous month
and 12.9 per cent during the same month of previous year.
Basic goods output growth declined to 4.9 per cent from
10 per cent for July 2006 and 8 per cent for August 2005.
Production growth of intermediate goods also declined
modestly to 7.6 per cent from 7.9 per cent a month ago
and 3.6 per cent a year ago.
in consumer goods output decelerated modestly after a
spectacular performance in July 2006. Consumer goods production
increased 14.6 per cent as compared to 17.9 per cent for
July 2006 and 9.3 per cent for August 2005. Consume durables
output growth improved further to 20.2 per cent for the
month while consumer non-durables production growth declined
to 12.6 per cent.