Industrial output grew at its slowest pace in almost two years

NEW DELHI: In December 2010 India’s India’s industrial output grows slowest in 20 months, rising by a modest 1.6 percent, compared to the same month of the previous year, according to official data released on Friday.

For the April-December period of the current fiscal, the index of industrial production, the barometer of the output of various sectors like manufacturing, stood at 8.6 percent, according to data released by the Planning Commission here.

The data showed Industrial output grew by 18.6 percent in December 2009, although it was in comparison to a lower base. Industrial output in November, earlier registered at 2.7 percent, was revised upwards to 3.62 percent.

Manufacturing output, which constitutes a majority of the IIP rose by 1 percent in December, while mining and electricity sectors grew by 3.8 percent and 6 percent, respectively.

Twelve out of the seventeen industry groups have shown positive growth during the month of December.
Also Deputy Chairman of the Planning Commission Montek Singh Ahluwalia said that not much should be read into the latest IIP figures.

“Month-to-month variation in the IIP should not occupy us too much. Also when it shoots up next month, don’t assume that it’s now going to continue at a very high rate,” said Ahluwalia.

Finance Minister Pranab Mukherjeee said the data was ‘disappointing but on expected lines’. He, however, said that monthly numbers did not reflect the actual scenario, he commented on the latest data.

“Monthly and weekly numbers do not reflect correct picture. Therefore, you shall have to take the whole year into account. Let us see how it reflects in the annual picture,” he said.
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