According to the Central Statistics organization (CSO), the Industrial Production for the month of October registered a positive growth of 8.2% compared to a 5% contraction during the same month of the last fiscal.. The growth rate is against a contraction of 0.7 percent in September.This positive growth is mainly influenced by a 9.6% growth in the manufacturing industry."I am very encouraged by the indications of the green shoots in economy in terms of production. IIP figures are very encouraging," told Finance Minister P Chidambaram
The Mining Sector for October 12’ contracted by 0.1% as opposed to a negative 5.9% growth for October 2011. For April-October has declined by 0.7 percent, as against contraction of 2.2 percent in the year-ago period.
The growth in industrial production for October has been constituted by encouraging activities in the sectors like manufacturing, power sector and consumer goods. The manufacturing sector, which constitutes over 75 percent of the index, grew by robust 9.6 percent in October, as against a contraction of 6 percent in same month last year. Somehow the manufacturing output marks a 1% low the April-October period of FY 12-13 compared to last year’s 3.8% growth.
Impressive figures are noted across the Capital goods output segment which marked a positive growth at 7.5% this October compared to a negative 26.5% on October 2011. The consumer goods segment has also marked a remarkable growth of 13.2% for October 12’ against a minute 0.1% growth last year. For the April-October this fiscal, growth in the consumer goods segment remained flat at 4 percent.
In the power sector, the production increased by 5.5% compared to 5.6% during 2011. Also notable is the power generation during April-October 2012 was at 4.7% increase compared to a growth of 8.9% the same period last year.
A growth of 16.5% is noted in the Consumer durables segment. The figures are impressive on comparison with last year’s which was at a -0.4%. The output of these goods during April-October is at 5.6% growth as opposed to 4.5% during the same period of last fiscal. The consumer non-durables also shows remarkable improvement at 10% for October this year compared to a 0.5% growth for same month last year. In the basic goods segment the growth is at 4.1% in October compared to 1.2% percent a year ago. During the April -October period, this segment recorded growth of 3 percent, compared to 6.3 percent in the first seven months of last fiscal.
Having said this, Inflation rate is still high even though it has come down a little for the month of November at 7.24%, as released by the Ministry of Statistics and Programmee Implementation. This has been mainly aided by the Wholesale-price index which is around 7.4% in October from 7.8% in September. Despite these encouraging factors, we are headed towards the lowest full year growth rate in a decade at 6%. The figures are way below the double figures once present before the global economic crisis.
