IIP declines by 3.5 per cent in March 2012

The Index of Industrial Production (IIP) declined by 3.5 per cent in March mainly on account of contraction in manufacturing and mining output.

Industrial production growth slowed to 2.4 per cent in 2011-12 from 8.2 per cent expansion in 2010-11.

Growth in the factory output, as measured by the Index of Industrial Production (IIP), was higher at 9.4 per cent in March last year.

Industrial production growth slowed to 4.1 per cent in February this year, mainly due to poor performance of manufacturing sector and consumer goods segment.

The industrial production has been dismal at 2.8 per cent in 2011-12 as compared to 8.2 per cent in previous fiscal due degrowth in mining at 2 per cent and slower 2.9 per cent growth in manufacturing, as per latest government data released on Friday.

Indicating sharp slowdown in the economy, output of the manufacturing sector, which constitutes over 75 per cent of the index, contracted by 4.4 per cent in March, compared to growth of 11 per cent in March 2011.

Mining output too declined by 1.3 per cent in March, as against growth of 0.4 per cent in the same month a year ago.

The capital goods output contracted by 21.3 per cent as against a growth of 14.5 per cent in the same month last year.

Consumer goods output has grown by a meagre 0.7 per cent per cent in March, as compared to 13.2 per cent in the same month last year.

Besides, the consumer durables segment output grew by 0.2 per cent in March, as against robust 14.9 per cent growth in the same month last year.

Power generation witnessed a growth of 2.7 per cent in March, compared to 7.2 per cent in the year-ago period.

In terms of industries, ten out of twenty two industry groups in the manufacturing sector have shown positive growth during the month of March as compared to the same month a year-ago.

With PTI inputs