Index of industrial production in India had grown at 7.2 percent in July

New Delhi, Sep 10 (Calcutta Tube) A 63 percent rise in capital goods production pushed India’s industrial output up to 13.8 percent in July, as against 7.1 percent in the previous month, according to official data released Friday.

The index of industrial production (IIP) had grown at 7.2 percent in July of 2009-10.

The double-digit growth is signifiant because industrial expansion in the previous month was revised downward to 5.67 percent from the earlier estimate of 7.1 percent. Experts earlier had said the industry could grow in single-digit for July because of the base effect.

Though 12 out of 17 industries, which constitute the IIP, posted a positive growth in July, it was manufacturing, the one with maximum weightage, rose the highest, to 15 percent in the month under review, compared to a rise of 7.4 percent in the year-ago period, data from the ministry of statistics showed.

The manufacturing sector constitutes about 80 percent of the IIP.

The mining sector expanded at 9.7 percent, quickening its pace from the increase of 8.7 percent in July 2009, while the electricity generation grew a slower 3.7 percent in June 2010, compared to 4.2 percent in the corresponding month last year.

Among the top performing sectors was capital goods, which grew the fastest at 63 percent, 9.1 percent in intermediate goods and 5.1 percent in basic goods.

However, during the April-July period, industrial output has risen 11.4 percent, compared to a mere 4.7 percent in the first four months of the last fiscal.

Leave a Reply

Your email address will not be published. Required fields are marked *