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India’s industrial production slips to 7.1 percent in June

New Delhi, Aug 12 (IANS) India’s industrial production grew at a much slower rate of 7.1 percent in June, as against 11.5 percent in the previous month, because of a dip in manufacturing activity, according to official data released Thursday.

The index of industrial production (IIP) was revised from an earlier estimate of 8.3 percent in May.

Though 13 out of 17 industries, which constitute the IIP, posted a positive growth in June, the one with highest weightage, manufacturing, fell to 7.3 percent in the month under review, compared to 8 percent in the period ago, as per data released.

The manufacturing sector constitutes about 80 percent of the IIP.

Among the top performing sectors was consumer durables, which grew the fastest at 27.4 percent, compared to 16.2 percent in the year-ago period.

Mining expanded at 9.5 percent, a slower rate of growth compared to an increase of 14.2 percent in June 2009.

However, during the April-June quarter, industrial output has risen 11.6 percent, compared to a mere 3.9 percent in the previous corresponding period.

Equities took a slight beating at the Bombay Stock Exchange after the numbers were out, but soon recovered smartly with analysts saying the dip in output had already been factored in Tuesday’s sell off.

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