JOIN US The drop in growth rate in industrial production, which has been consistently witnessing double digit growth rate in the last eight months, has also given rise to apprehension whether the decline will become the trend in coming months. As many as 13 out of 17 industries posted a positive growth in June.
Cumulative growth
Despite a single digit growth in June, cumulatively the industrial production grew by 11.6 per cent in the first quarter (April to June, 2010) from 3.9 per cent in the corresponding period of previous fiscal. Though the slump in the industrial growth rate in June has given rise to apprehension that this could be the trend in coming months Planning Commission Deputy Chairman Montek Singh Ahluwalia said performance in just one month could not set the trend. “Industrial growth rate needs not be in double digits for the whole year for the economy to grow at 8.5 per cent,” Ahluwalia said. Industrial production expanded by an impressive 11.35 per cent in May this year.
Growth in the key manufacturing sector, which constitutes around 80 per cent of the Index of Industrial Production (IIP) to measure factory output, declined to 7.3 per cent from 8 per cent in June last year, IIP data released here show. Electricity generation witnessed drop in growth rate to 3.5 per cent from high of 8 per cent in June, 2009. Though mining witnessed the fastest growth rate at 9.5 per cent in June it was still lower than 14.2 per cent registered last year. Consumer durable is the only segment that showed comparatively good growth. It grew by 27.4 per cent as against 16.2 in June 2009.