New Delhi: Industrial production growth rate bounced back to a 16-month high of 8.2 per cent in October on good performance of the manufacturing, power sector and higher output of capital as well as consumer goods, indicating sudden recovery in the economy. Read More: Retail inflation surges 9.9 pc in Nov (Agencies)
The factory output, as measured by the Index of Industrial Production (IIP), contracted by 5 per cent in October last year. The IIP had expanded by 9.5 per cent in June 2011.
Industrial output growth in the April-October period this fiscal, however, was 1.2 per cent, less than 3.6 per cent in the same period in 2011-12, according to the official data released here today.
Meanwhile, the contraction in the industrial production during September this year was revised downward to 0.7 per cent per cent from earlier provisional estimates of 0.4 per cent released last month.
The manufacturing sector, which constitutes over 75 per cent of the index, grew by robust 9.6 per cent in October, as against a contraction of 6 per cent in same month last year. However, the output of the key sector remained low at one per cent in April-October this year as against 3.8 per cent growth in the same period in 2011-12.
Capital goods output also shown remarkable improvement as it grew by 7.5 per cent in October, as against a massive contraction of 26.5 per cent in October 2011. However, output of capital goods contracted in the April-October period by 11.4 per cent, as against a dip in production by 0.5 per cent in the 2011-12 period.
Power generation grew by 5.5 per cent in October compared 5.6 per cent same month last year. The electricity generation in the April-October period is 4.7 per cent against 8.9 per cent in a year-ago period.
Another segment which performed well is consumer goods as its output registered a double-digit growth of 13.2 per cent in October against a meager 0.1 per cent growth year ago.
In April-October period of this fiscal, the growth in the consumer goods segment remained flat at 4 per cent. However, mining output in October contracted by 0.1 per cent compared to a decline in production by 5.9 per cent in same month last year. The sector's production in April-October also declined by 0.7 per cent, against a contraction of 2.2 per cent in the year-ago period.
In terms of industries, 17 out of the 22 industry groups in the manufacturing sector have shown positive growth during October 2012 compared to the corresponding month of the previous year.
Consumer durables is another segment which showed smart recovery by registering a growth in production by 16.5 per cent in October, compared to a contraction of 0.4 per cent in the same month last year.
The output of these goods registered a growth of 5.6 per cent during April-October, as against 4.5 per cent in the same period last fiscal.
The consumer non-durables output growth also remained in double digit at 10.1 per cent in October, as against a meager 0.5 per cent growth in the same month last year. This segment grew by 2.7 per cent in the seven month period of this fiscal, as against 3.6 per cent in the same period of 2011-12.
The basic goods production growth also improved to 4.1 per cent in October compared to 1.2 per cent the year-ago period.
During the April-October period, this segment recorded a growth of 3 per cent, compared to 6.3 per cent in the first seven months of last fiscal.
The increase in IIP numbers would ease pressure on RBI to lower interest rates amid high inflation. The retail inflation in November rose to 9.90 per cent from 9.75 per cent in October.
New Delhi: Industrial production growth rate bounced back to a 16-month high of 8.2 per cent in October on good performance of the manufacturing, power sector and higher output of capital as well as consumer goods, indicating sudden recovery in the economy.
Read More: Retail inflation surges 9.9 pc in Nov