Industrial production grows 2% in Sept
New Delhi: After remaining flat in August, industrial production is showing signs of recovery as the output grew by two per cent in September, mainly on account of better performance by power and mining sectors. Factory output, as measured in terms of Index of Industrial Production (IIP), had contracted by 0.7 per cent in September last year. Meanwhile, IIP for August this year has been revised to 0.43 per cent from the provisional estimate of 0.6 per cent.
According to data released by the government, industrial output for April-September is 0.4 per cent compared to 0.1 per cent in the same period of 2012-13. Power generation showed a healthy growth of 12.9 per cent in the month under review. Expansion in power generation was 5.9 per cent in April-September as compared to 4.6 per cent in the same period of the last year.
The mining sector, with a weight of about 14 per cent in IIP, grew by 3.3 per cent in September as against 2.2 per cent in the same month last fiscal. However, during April-September, the output shrank by 2.5 per cent as against a contraction of 1.1 per cent.
The manufacturing sector, which constitutes over 75 per cent of the index, grew by a meagre 0. 6 per cent in September as against a decline of 1.6 per cent, a year ago. During April-September, the sector’s output grew by 0.1 per cent compared to a decline of 0.3 per cent in same period last year.
Capital goods production, a barometer of demand, showed a decline of 6.8 per cent in the month as against a contraction of 13.3 per cent in September 2012. The segment declined by 0.7 per cent in April-September as against a sharp contraction of 14.2 per cent in the comparable period.