India’s industrial output falls by 1.8% in June, down 0.1% in Q1
MDT/PTI 09 August 2012

The industrial growth rate for May 2012 has been revised to 2.53% upwards, from the provisional estimates of 2.4%

New Delhi: India’s industrial production has declined by 1.8% in June, mainly due to poor show by the manufacturing and capital goods sectors, indicating a persistent slowdown in the economy, reports PTI.
 

According to the official data released on Thursday, industrial output in the April-June quarter too contracted by 0.1% this fiscal.
 

Growth in factory output, as measured by the Index of Industrial Production (IIP), was 9.5% in June and 6.9% in April-June quarter in 2011-12.
 

Chandrajit Banerjee, director general, CII, said, "The June 2012 IIP numbers are disappointing and are a cause for serious concern. The IIP growth for June clearly points to a deepening industrial slowdown which could have a long lasting effect on the economy. CII has been highlighting this issue for the last few months. The situation calls for urgent policy measures both by RBI as well as the Government to salvage industry from further decline in industrial output."
 

The manufacturing sector, which constitutes over 75% of the index, witnessed a slump in output by dismal 3.2% in June against a growth of 11.1% in June last year.
 

The performance of the manufacturing sector was not persistent in April-June quarter also as the output declined by 0.7% against a growth of 7.7% in the three-month period a year ago.

The capital goods production also declined by a massive 27.9% in June against a growth rate of 38.7% a year ago.
 

The output of these goods contracted in April-June period by 19.6% against a growth of 17% in 2011-12.
 

Meanwhile, the industrial growth rate for May 2012 has been revised to 2.53% upwards, from the provisional estimates of 2.4% reported earlier.
 

Mining output in June saw a growth by just 0.6% against a contraction of 1.4% in the same month last year.
 

The sector’s production in April-June quarter declined by 1.1% compared to a growth of 0.6% in 2011-12.
 

Consumer goods production grew by 3.5% in June as compared to 3.1% growth in June last year.

During the first quarter of this fiscal, the growth in the segment was 4% as compared to 4.4% in the three month period a year ago.
 

Consumer durables production showed a faster growth rate of 9.1% in June compared to 1.6% in June last year. The output of these goods registered a growth of 8% in April-June quarter this fiscal as against 2.7% in the same period in 2011-12.
 

The consumer non-durables segment output declined by 0.1% in June as against a growth of 4.3% in the same month a year ago. This segment grew by 0.7% in first quarter this fiscal as against 5.9% in 2011-12.
 

The basic goods production growth slowed to 4.1% in June as compared 7.8% last year. During the first quarter this segment recorded a growth of 3.5% as compared to 7.5% a year ago.
 

Power generation witnessed a growth of 8.8% during June compared to 8% in June last year.
Electricity generation increased by 6.4% in the first quarter of this fiscal as against 8.3% in the same period in 2011-12.
 

In all, out of 22 industry groups in the manufacturing sector, 14 of them showed growth in June.

Comments
Free Helpline
Legal Credit
Feedback