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Industrial production dips by 3.5% in March

Industrial production dips by 3.5% in March
Indicating a sharp slowdown in the economy, the industrial production declined by 3.5 per cent in March, mainly on account of contraction in manufacturing and mining output. Growth in the factory output, as measured by the Index of Industrial Production (IIP), was higher at 9.4 per cent in March last year.

The industrial production has been dismal at 2.8 per cent in 2011-12, as compared to 8.2 per cent in previous fiscal due to degrowth in mining at 2 per cent and slower 2.9 per cent growth in manufacturing, as per latest government data released on Friday.

Output of the manufacturing sector, which constitutes over 75 per cent of the index, contracted by 4.4 per cent in March, compared to a growth of 11 per cent in March 2011. Mining output too declined by 1.3 per cent in March, as against growth of 0.4 per cent in the same month a year ago. The capital goods output contracted by 21.3 per cent, as against a growth of 14.5 per cent in the same month last year.

Consumer goods output has grown by a meagre 0.7 per cent per cent in March, as compared to 13.2 per cent in the same month last year. Besides, the consumer durables segment output grew by 0.2 per cent in March, as against robust 14.9 per cent growth in the same month last year. Power generation witnessed a growth of 2.7 per cent in March, compared to 7.2 per cent in the year-ago period.

In terms of industries, 10 out of 22 industry groups in the manufacturing sector have shown positive growth during the month of March as compared to the same month a year-ago.

The output of basic goods went up by just 1.1 per cent in March, as against 6.4 per cent in the same month last year. However, intermediate goods witnessed a contraction of 2.1 per cent as against 3 per cent growth in March last year.

The consumer non-durable goods output grew by a miniscule one per cent in the month of March as compared to 11.9 per cent in the same period last year.

The capital goods output declined by 4.1 per cent in 2011-12 as compared to a high growth of 14.8 per cent in 2010-11. Besides, the intermediate goods production also contracted by one per cent in 2011-12 as compared to a growth of 7.4 per cent in previous fiscal.
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