Industrial growth falls to 3.3 pc in Jul

New Delhi, Sep 12: Industrial growth fell to a meagre 3.3 per cent in Jul 2011 this year on account of poor performance mainly by capital goods, manufacturing and mining sectors, reflecting sluggishness in the economy.

Growth in the factory output, as measured in terms of the Index of Industrial Production (LIP), had stood at 9.9 per cent in Jul 2010.

During the Apr-Jul period of this fiscal, IIP growth stood at 5.8 per cent, as against 9.7 per cent in the corresponding four-month period last year. Output of the manufacturing sector, which constitutes over 75 per cent of the index, grew by only 2.3 per cent in Jul compared to 10.8 per cent expansion in the same month in 2010, according the official data released on Sep 12.

Production of capital goods declined by 15.2 per cent in Jul, in comparison to a growth of 40.3 per cent in the same month of 2010.

The growth in mining production was 2.8 per cent in the month, down from 8.7 per cent in the same month last year.

Production of intermediate goods fell by 1.1 per cent during the month under review against a growth of 8.5 per cent in July 2010. Consumer durables grew by 8.6 per cent in July as compared to a growth of 14.8 per cent in the corresponding month of 2010.

However, electricity production improved witnessing a growth of 13.1 per cent in July this year as against a growth of 3.7 per cent in Jul, 2010.

PTI