India's industrial output rises 11.5pc in May 2010

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New Delhi, Jul 12: According to the index of industrial production, India's industrial output rose up to 11.5 percent in May 2010. However, there was considerable sharp decline and slowdown in growth as compared to the previous month of Apr, when the IIP grew at 16.5 percent.

The IIP for Apr was revised downwards to 16.5 percent from 17.6 percent earlier. Capital goods production dropped more than 50 percent to 34.3 percent in May as compared to 72.8 percent in Apr.

Various sectors like mining grew at 8.7 percent, manufacturing at 12.3 percent and electricity grew at 6.4 percent in May. where as the growth in consumer goods stood at 8.2 percent in May, as compared to 14.5 percent in April.

Wireless telecommunication companies including Bharti Airtel Ltd added 16.3 million customers in May, about 3 percent more than Apr.

Cement companies such as ACC Ltd sold about a tenth more in Jun from a year earlier, while sales at motorcycle maker, Hero Honda Motors Ltd rose 16.6 percent.

“One should not expect industrial output to be abnormally high. However FY 11 will continue to witness double digit IIP growth," said Finance Secretary, Ashok Chawla.

However the drop in the industrial output in May as compared to Apr is mainly because of the sharp decline in the capital goods output.

OneIndia News

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