10 Oct 2008 1:09 PM

IIP grows by meagre 1.3% in August 2008

Manufacturing sector grows by 1.1%

As per the data released by the Ministry of Planning & Programme Implementation, the growth in the Index of Industrial Production (IIP) dipped to 1.3 per cent in August 2008. This pulled down the cumulative growth in the IIP during April-August 2008 to 4.9 per cent.

The manufacturing sector reported a growth of 1.1 per cent in August 2008. While food products (up 8.9 per cent), beverages & tobacco products (up 5.7 per cent), basic metals (up eight per cent) and transport equipments (up 11.2 per cent) grew at a healthy pace, the sharp declines in production of cotton textiles (-5.4 per cent), wool, silk and man-made fibres (-14.9 per cent), jute and other textiles (-6.7 per cent), wood products (-8.1 per cent), leather products (-seven per cent), rubber, plastic, petroleum and coal (-8.4 per cent), (metals products and parts (-12.3 per cent) and other manufacturing industries (-5.7 per cent) pulled down the growth in the manufacturing sector IIP.

The IIP of mining rose by four per cent in August 2008, while that of electricity reported a marginal growth of 0.8 per cent.

The use-based classification of the IIP shows that its the intermediate good, which pulled down the overall IIP growth. Intermediate goods production declined by 6.2 per cent in August 2008. The IIP of basic goods rose by 3.9 per cent, while that of capital goods and consumer durables clocked a growth of 2.3 per cent and 5.1 per cent, respectively.

Manasi Swamy
smanasi@cmie.com