India’s September industrial output moved at a snail’s pace to inch higher by subdued 1.9% as against the same month last year. Adding to the woes, the IIP figures for August 2011 were revised downwardly to 3.6% from 4.1% marred by poor slowdown in manufacturing activity and decline in mining output.

Moreover, India’s IIP index recorded its most tepid growth rate in last two years, further affirming its stance about the decelerating economic impact on account of steep interest rate hike by the RBI in its monetary policy.

industry1 thumb IIP August data at 4.1%; Moody’s raises an alarm!

However, the slowed IIP data was not absolutely unanticipated looking at slump in India’s eight core infrastructure sectors – crude oil, fertilizers, coal, natural gas, electricity, petroleum refinery and finished steel – that grew by only 2.3% in September as against 3.3% a year ago. These core industries constitute more than a third of the key IIP data.

While manufacturing sector, which contributes almost two-thirds of the overall IIP index, grew by 2.1% in September; the mining sector and capital goods output contracted by 5.6% and 6.8% respectively.

On the other hand, production of intermediate goods logged a tepid growth rate of 1.5% during September; whereas non-durables output declined by 1.3% during the month under review. On a positive note, electricity production witnessed a strong 9% growth in September, as against a slowed 1.8% growth in September 2010.

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4 Responses to India’s September IIP data logs 1.9% growth !

  1. Hi..
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