India’s Industrial output fell 4.2 per cent in
October, the most in three years, against growth of 2.5 per cent in September, according
to data released by the Ministry of Statistics and Programme Implementation.
This was despite the festive season and a favorable
base-effect — in October 2013, production had fallen 1.2 per cent. The Index of
Industrial Production (IIP) had previously declined more than 4.2 per cent in
October 2011, when it had registered a five per cent fall.
The decline in October was primarily due to a sharp
7.6 per cent contraction in the manufacturing sector, against 2.5 per cent
expansion in the previous month, official data showed on Friday. In October
last year, output in the manufacturing sector had declined 1.3 per cent.
The fall in industrial production in October was the
first this financial year. It is likely the decline will hit expectations
economic growth in the second half of this financial year will be more than 5.5
per cent, the growth in the June quarter.
In October, as many as 16 of the 22 industrial
groups saw a decline in production, including computing machinery, television
sets, radio, gems and jewellery and furniture.
For the April-October period, cumulative rise in
industrial production stood at 1.9 per cent, compared with 0.2 per cent in the
corresponding period last year.
In October, the eight core infrastructure sectors
had expanded a healthy 6.3 per cent, raising hope of good industrial
production. Data on the core sectors do not take into account production in the
consumer durables segment.
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