IIP nosedives to 2.7 pc in November 2010

New Delhi, Jan 12 (PTI) Industrial growth nosedived to2.7 per cent in November 2010 against 11.3 per cent in thesame period a year-ago, pulled down by dismal performance ofmanufacturing sector, particularly the consumer non-durables.

In October 2010, the Index of Industrial Production (IIP)had expanded by 11.29 per cent.

The industrial growth during April-November of thisfiscal stood at 9.5 per cent, against 7.4 per cent in thecorresponding period last year, according to an official datareleased here today.

In November, manufacturing growth plummeted to 2.3 percent against 12.3 per cent a year ago.

The manufacturing consumer non-durables productiondeclined by (-) 6 per cent in the month under review asagainst a growth of 2.3 per cent in the same period a yearago.

However, capital goods sector posted a growth of 12.6 percent against 11 per cent in the same period last year.

Besides manufacturing, mining growth also fell to 6.0 percent against 10.7 per cent in the month under review. Whereas,electricity generation expanded by 4.6 per cent against 1.8per cent.

With IIP slowing down considerably, the Reserve Bank ofIndia may be in a dilemma on whether or not to raise itspolicy rates to fight high inflation at the upcoming quarterpolicy review on January 25.