IIP nosedives to 2.7% in Nov; FM vows corrective action
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.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.
First Published: Jan 12, 2011 11:43 IST