IIP nosedives to 2.7% in Nov; FM vows corrective action | business | Hindustan Times
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IIP nosedives to 2.7% in Nov; FM vows corrective action

business Updated: Jan 12, 2011 18:32 IST

Industrial growth nosedived to 2.7% in November 2010 against 11.3% in the same period a year-ago, pulled down by dismal performance of manufacturing sector, particularly the consumer non-durables.

In October 2010, the Index of Industrial Production (IIP) had expanded by 11.29%.

The industrial growth during April-November of this fiscal stood at 9.5%, against 7.4% in the corresponding period last year, according to an official data released here today.

In November, manufacturing growth plummeted to 2.3% against 12.3% a year ago.

The manufacturing consumer non-durables production declined by (-) 6% in the month under review as against a growth of 2.3% in the same period a year ago.

However, capital goods sector posted a growth of 12.6% against 11% in the same period last year.

Besides manufacturing, mining growth also fell to 6.0% against 10.7% in the month under review. Whereas, electricity generation expanded by 4.6% against 1.8%.

With IIP slowing down considerably, the Reserve Bank of India may be in a dilemma on whether or not to raise its policy rates to fight high inflation at the upcoming quarter policy review on January 25.