Power, mining sector help industry output grow by 2%

Power generation grows at a healthy rate of 12.9%, mining sector by 3.3%

Power, mining sector help industry output grow by 2%

New Delhi : After remaining flat in August, industrial production is showing signs of recovery as the output grew by 2% in September, mainly on account of better performance by power and mining sectors. Factory output, as measured in terms of Index of Industrial Production (IIP), had contracted by 0.7% in September last year.

Meanwhile, IIP for August for the current fiscal year has been revised to 0.43% from the provisional estimate of 0.6%. According to data released by the government, industrial output for April-September is 0.4% compared to 0.1% in the same period of 2012-13.
Power generation showed a healthy growth of 12.9% in the month under review. Expansion in power generation was 5.9% in April-September as compared to 4.6% in the same period of the last year.
The mining sector, with a weight of about 14% in IIP, grew by 3.3% in September as against 2.2% in the same month last fiscal. However, during April-September, the output shrank by 2.5% as against a contraction of 1.1%.
The manufacturing sector, which constitutes over 75% of the index, grew by meagre by 0. 6% in September as against a decline of 1.6% a year ago.
During April-September, the sector’s output grew by 0.1% compared to a decline of 0.3% in same period last year. Capital goods production, a barometer of demand, showed a decline of 6.8% in the month as against a contraction of 13.3% in September 2012. The segment declined by 0.7% in April-September as against a sharp contraction of 14.2% in the comparable period.
The consumer durables segment contracted by 10.8% in September as against a decline of 1.5% in the same month last year. During April-September, the segment contracted by 10.9% compared to a growth of 4% the same period last year.
The growth in non-durables sector was 11.3% in the month under review as against 1.4% in September last year. During April-September, the segment’s growth was 7.3% compared to 1.6% in the same period last year. Overall, the consumer goods grew by 0.6% in September compared to flat output in the same month last year.
During April-September the consumer goods output contracted by 1.3% compared to 2.7% growth in the corresponding period last year. Intermediate goods segment expanded at a rate of 4.1% in September compared to 1.7% in same month last year. During April-September the segment grew by 2.6% compared to 1.1% in the six month period last year.
The basic goods segment grew at a rate of 5.4% in September compared to 2.7% in same month last year. During April-September the segment grew by 1.2% as against 2.7% in six months period a year ago. In terms of industries, 13 out of 22 industry groups in the manufacturing sector have shown growth.

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