Industrial production slows down to 11.1%

India's industrial production grew by a sluggish 11.1 per cent during December 2006 from a peak of 14.4 per cent a month ago, as manufacturing sector expanded by a relatively poor 11.9 per cent on a sequential basis.

However, year-on-year, the Index of Industrial Production growth at 11.1 per cent was a marked improvement over 5.7 per cent recorded in the year-ago period.

Manufacturing, on a sequential basis, grew 11.9 per cent during December as against 15.7 per cent in November 2006. However, on a Y-o-Y basis, the sector showed considerable improvement compared to 6.4 per cent growth a year ago.

During April-December of 2006-07, the IIP showed a growth of 10.8 per cent over 8 per cent in the corresponding period last year. IIP for this period went up to 239 from 215.7.

Electricity came closer to the double-digit figure, registering a growth of 9.3 per cent in December against 3.4

per cent a year ago.

Even on sequential basis, it showed an improvement from 8.7 per cent in November 2006. Having peaked to seven per cent in November, the mining sector retracted to 3.8 per cent in December.

But, year-on-year, it showed a growth of 3.8 per cent in December against a negative trend of 0.1 per cent. As per the user based classification, year-on-year growth for basic goods was 11.7 per cent, capital goods 20.2 per cent and intermediate goods 11.2 per cent in December over the same month last year.

The consumer durables and non-durables segment recorded a growth of 3.3 per cent and 8.7 per cent respectively with overall growth in consumer goods being 7.4 per cent.