Industrial growth revives to 8.8 percent in June

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Factory
New Delhi, Aug 12: Industrial growth in the country revived moderately to 8.8 per cent in June this year on the back of a smart recovery in the manufacturing sector and better offtake of capital goods.

Growth in factory output, as measured in terms of the Index of Industrial Production (IIP), stood at 7.4 per cent in June last year, as per government data released here.

During the first quarter (April-June) this fiscal, IIP growth stood at 6.8 per cent, as against 9.6 per cent in the corresponding three-month period last year.

Output of the manufacturing sector, which constitutes over 75 per cent of the index, grew by 10 per cent in June, 2011, compared to 7.9 per cent in the same month last year.

Offtake of capital goods jumped by 37.7 per cent in June, 2011, in comparison to a growth of merely 3.7 per cent in the previous year.

Similarly, electricity production also improved, witnessing a growth of 7.9 per cent during the month under review, as compared to a growth of 3.5 per cent in June, 2010.

However, growth in mining sector output declined to a mere 0.6 per cent in June, 2011, from 6.9 per cent in the same month last year.

Non-durable consumer goods (FMCG) production also saw a slowdown in growth to 2.1 per cent in June, compared to 7.5 per cent expansion a year ago, while growth in consumer durables output also fell sharply to just 1 per cent from 21.2 per cent a year ago.

Meanwhile, the industrial growth number for May this year has been revised upward to 5.9 per cent from the provisional estimate of 5.6 per cent. 

PTI

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