NEW DELHI: The global economic crisis has had a negative impact on India’s industrial output, which posted a 0.4 percent decline for the first time in 15 years. The official report on quick estimates of the Index of Industrial Production (IIP), released by Central Statistical Organization of the Ministry of Statistics and Program Implementation, states: “The general index stands at 261.5, which is 0.4 percent lower as compared to the level in the month of October 2007. The cumulative growth for the period April-October 2008-09 stands at 4.1 percent over the corresponding period of the previous year.”
Reacting to the fall in output, Economic Council Chairman Suresh Tendulkar said: “These figures are more disappointing than what we expected.” The cumulative industrial production in three sectors of mining, manufacturing and electricity, during April-October 2008-09 over the corresponding period of 2007-08 have been 3.7 percent, 4.2 percent and 2.8 percent respectively, which moved the overall growth in general index to 4.1 percent, according to the report.
Seven out of 17 industry groups have shown positive growth this October as compared to the same month a year ago. The highest growth of 11 percent was shown by other manufacturing sectors, followed by a 7.5 percent increase in beverages, tobacco and related products; a 5.4 percent rise in paper and paper products as well as printing, publishing and allied industries; a 2.7 percent increase in basic goods; a 3.1 percent increase in capital goods; and a 3.7 percent decrease in intermediate goods. Declining sectors included: leather and leather and fur products (down 18.1 percent); wood and wood products (down 14.4 percent); a 9.6 percent fall in cotton textiles; and a 2.3 percent drop in the growth of consumer goods in general.
“The government has taken note of a slowdown in the industrial production in October, which appears to be continuing in November,” Commerce Secretary G.K. Pillai said.
