India’s industrial output plunged to 1.8 per cent in June 2012
compared to 9.5 per cent growth registered during June 2011. For the
first quarter, the index of industrial production (IIP) declined 0.1 per
cent against 6.9 per cent growth in the same quarter of fiscal 2011-12.
The figure released by the Central Statistics Office of the Ministry of
Statistics and Programme Implementation on 9 August 2012.
Manufacturing sector at -3.2 per cent and mining sector at 0.6 per
cent largely hurt the overall IIP growth in June 2012. Manufacturing
sector had recorded 11.1 per cent growth and mining sector output
declined by 1.4 per cent in June 2011.
The capital goods category recorded a decline of 27.9 per cent in
output in June 2012, while, the category had seen a 38.9 percent growth
in the same month in 2011.
Basic goods output grew 4.1 per cent in June against 7.8 per cent
growth in the June 2011. Growth of Intermediate goods remained unchanged
at 1.6 per cent.
Consumer durables witnessed a growth of 9.1 per cent. However,
consumer non-durables declined 1 per cent in June against a growth of
4.3 per cent in the same month last year.
Power sector registered a marginal 8.8 per cent growth in June 2012,
higher than 8 per cent growth recorded in the same month in 2011.
The weak number of IIP could force Reserve Bank of India to cut
policy rates at the next mid-quarter monetary policy review meeting
slated for mid-September. Thus far the central bank has been counting on
tight monetary policy to keep inflation in check. RBI had left the key
policy rates unchanged in its mid-quarterly monetary policy review in
July 2012.
Index of Industrial Production (IIP)
(Index of Industrial Production IIP) is compiled using data received
form 16 source agencies including Department of Industrial Policy &
Promotion (DIPP); Indian Bureau of Mines; Central Electricity Authority;
Joint Plant Committee; Ministry of Petroleum & Natural Gas; Office
of Textile Commissioner; Department of Chemicals & Petrochemicals;
Directorate of Sugar; Department of Fertilizers; Directorate of
Vanaspati, Vegetable Oils & Fats; Tea Board; Office of Jute
Commissioner; Office of Coal Controller; Railway Board; Office of Salt
Commissioner and Coffee Board.
