12 Aug 2008 12:58 PM

IIP rises by 5.4 per cent in June 2008

Manufacturing sector grows by 5.9 per cent

As per the data released by the Ministry of Planning & Programme Implementation, the Index of Industrial Production (IIP) rose by 5.4 per cent in June 2008. The Ministry also revised upwards its industrial output growth figure for May 2008 to 4.1 per cent from 3.8 per cent earlier. This pulled up the cumulative growth in the IIP during April-June 2008 to 5.2 per cent.

The partial recovery in the growth in the IIP in June 2008 was on account of the improvement in the growth of the manufacturing sector. The manufacturing sector grew by 5.9 per cent driven by a healthy growth in production of beverages, tobacco & tobacco products (22.3 per cent), transport equipments (12.6 per cent), chemicals (11.5 per cent), machinery (9.2 per cent) and other manufacturing products (21.3 per cent). Cumulative growth in the manufacturing sector output during April-June 2008 was 5.6 per cent.

The mining & quarrying sector, which registered over five per cent growth in output for the first two months of 2008-09, witnessed a deceleration in growth to 2.9 per cent in June 2008. Although the growth in electricity picked up a bit, at 2.6 per cent it was still a drag on the overall industrial growth.

Use-based classification of the IIP reveals that while growth in consumer goods production picked up (10 per cent) that in production of capital goods decelerated to 5.6 per cent in June 2008. Basic goods production grew by 2.9 per cent and intermediate goods registered a 2.9 per cent growth in production.

Manasi Swamy
smanasi@cmie.com