Industrial growth revives to 8.8 per cent in June

Industrial growth in the country revivedmoderately to 8.8 per cent in June this year on the back of a smart recovery inthe manufacturing sector and better offtake of capital goods.

Growth in factory output, as measured interms of the Index of Industrial Production (IIP), stood at 7.4 per cent inJune last year, as per government data released.

During the first quarter (April-June) thisfiscal, IIP growth stood at 6.8 per cent, as against 9.6 per cent in thecorresponding three-month period last year.

Output of the manufacturing sector, whichconstitutes over 75 per cent of the index, grew by 10 per cent in June, 2011,compared to 7.9 per cent in the same month last year.

Offtake of capital goods jumped by 37.7 percent in June, 2011, in comparison to a growth of merely 3.7 per cent in theprevious year.

Similarly, electricity production alsoimproved, witnessing a growth of 7.9 per cent during the month under review, ascompared to a growth of 3.5 per cent in June, 2010.

However, growth in mining sector outputdeclined to a mere 0.6 per cent in June, 2011, from 6.9 per cent in the samemonth last year.

Non-durable consumer good s (FMCG)production also saw a slowdown in growth to 2.1 per cent in June, compared to7.5 per cent expansion a year ago, while growth in consumer durables outputalso fell sharply to just 1 per cent from 21.2 per cent a year ago.

Meanwhile, the industrial growth number forMay this year has been revised upward to 5.9 per cent from the provisionalestimate of 5.6 per cent.