Industrial growth slowed to 3.7% in January, 2011, compared to 16.8% expansion in the year-ago period, dragged down by the poor performance of the manufacturing sector, particularly capital goods.
However, growth in factory output in January, as measured in terms of the Index of Industrial Production (IIP), was better than the 2.53% expansion (revised upward from 1.6%) witnessed in the previous month.
Industrial output growth during the April-January period this fiscal stood at 8.3% vis-a-vis the corresponding period of the previous year. In contrast, industrial output expanded by 9.5% year-on-year in April-January, 2009-10, official data released here today shows.
In January, manufacturing growth plummeted to 3.3% from 17.9% a year ago.
The capital goods sector contracted by 18.6% in the month under review. The sector had posted a robust growth of 57.9% in January, 2010.
However, production in the consumer non-durables segment grew by 6.9% during the month under review. It had contracted by 7% in the same period a year ago.
Mining growth also plummeted to 1.6% in the month under review from 15.3% in the comparable month of 2010. Electricity generation output rose by 10.5% in January, compared to 5.6% growth in the same month last year.
On the whole, 14 out of 17 industry groups achieved positive growth in the first month of 2011.