New Delhi:Industrial production growth, as measured by the Index of Industrial production (IIP), nearly halved to 6.4% in September this year, pulled down by a poor showing by the manufacturing sector, especially the consumer durables segment.
IIP for the same month last year stood at 12%. For the first half of the current fiscal (April-September 2007) too, IIP slipped to 9.2% against 11.1% in the corresponding period a year ago, an official release said on 12 November 2007.
During September, the manufacturing sector growth decelerated to 6.6% as compared to 12.7% in the same month last year.
The worst performance, however, was enacted by the consumer durables sector which reported a 7.6% decline in output during the month.
The index for power generation too slipped to 4.5% during the month as comapred to 11.3% in September 2006.
The mining sector, however, showed a positive trend at 6%, improving upon the growth of 4.3% recorded in the corresponding month last year.
As regards the cumulative growth, manufacturing sector output during April-September 2007 slipped to 9.7% as compared to 12.3 per cent in the corresponding period last year.
Some improvement, however, was recorded in electricity and mining sectors which posted growths of 7.7 per cent and 5.3 per cent over 6.6 per cent and 3.1 per cent respectively during the same period in the previous fiscal.
The use-based classification of IIP revealed that consumer durables sector output declined by 7.6 per cent in September, while the consumer non-durables sector posted a low growth of 2.2 per cent.
The output of the consumer goods sector as a whole declined by 0.6 per cent during the month as against a robust growth of 12.1 per cent in September 2006.
The growth of the basic goods slipped to 6.7 per cent during September as compared to 11.5 per cent in the corresponding month last year. The growth of the intermediate goods also decelerated to 9.3 per cent from 13.8 per cent in the same month in the last fiscal.
The capital goods sector, however, showed a healthy growth of 18.6 per cent in September as compared to 9.5 per cent in the corresponding month last year.
The six-monthly performance chart reveals that output of the consumer durables sector declined by 3.2 per cent in April-September 2007, as compared to 15.2 per cent growth in the previous fiscal.
The output of the consumer non-durables sector during the same period declined to 8.4 per cent from 10.2%, consumer goods to 5.3% from 11.5 and intermediate goods to 9.5% from 10.9%.
The output of the capital goods sector during the first half of the current fiscal improved to 19.6% from 17.5% and basic goods to 9.4% from 8.8%.
In terms of the two-digit NICK classification of industry groups, “transport equipment and parts” and “food product” showed a decline in production by 1.6% and 1.5% respectively during September.
The remaining 15 out of a total of 17 industry groups showed positive growth led by 72.1% growth by “wood and wood products; furniture and fixtures” segment.