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Industrial activity decelerates: Reserve Bank

india Updated: Jan 26, 2009 21:31 IST
Industrial activity decelerates

Industrial activity decelerated during April-November 2008 with year-on-year expansion in the Index of Industrial Production (IIP) being 3.9 per cent as against 9.2 per cent in the year-ago period, the RBI said.

The slowdown in manufacturing was largely on account of food, textiles and metals, the apex bank said in its Macroeconomic and Monetary Developments Third Quarter Review 2008-09, released in Mumbai on Monday.

The electricity sector recorded lower growth on account of decline in power generation in nuclear and hydro-plants. Mining growth also decelerated, the RBI said.

According to the apex bank, "the slowdown in the growth of manufacturing was on account of 13 industry groups (with a combined weight of 67.5 per cent in the IIP), recording decelerated/negative growth during April-November".

"In particular, while production declined in respect of 'food products', most of the textiles, leather and wood products, some industry groups such as textile products, chemical and chemical products, machinery and equipment and basic metal and alloy industries witnessed deceleration," the RBI said.

In terms of use-based classification of the IIP, basic goods, capital goods and intermediate goods recorded decelerated growth during April-November 2008-09 whereas consumer goods recorded marginally higher growth.

The performance of basic goods reflected subdued growth in electricity and a fall in production of phosphatic fertilisers, steel and aluminium products, and deceleration in production of caustic soda and structurals, the RBI said.