IIP growth falls to 3% in March 2008

New Delhi, May 12 (UNI) The industrial production grew three per cent during March 2008, lowest in last six years, as compared to 14.8 per cent in same month of the previous year on account of poor performance by mining, manufacturing and electricity sectors.

Production in manufacturing sector, which has an 80 per cent share in the Index of Industrial Production, grew by 2.9 per cent as against a robust 16 per cent in the same month of the previous year, data released by Central Statistical Organisation today revealed.

Electricity production grew by 3.7 per cent as against 7.9 per cent in March 2007, whereas mining production decreased to 3.8 per cent as against eight per cent in the said period.

Appreciating rupee as well as rising interest rates has hit industrial production growth in 2007-08.

In 2007-08, industrial production growth stood at 8.1 per cent as against 11.6 per cent in the same period of the previous year.

Consumer durables production in March 2008 dipped by 2.1 per cent as against a growth of 3.8 per cent in the same month previous year.

Capital goods grew by 8.6 per cent as against 18.1 per cent in the same said period.

Basic goods production grew by 3.1 per cent as against 11.9 per cent, while intermediate goods production was up by 3.5 per cent, as against 15.3 per cent in March 2007.

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