Industrial output in July grows at 0.1 percent

September 12th, 2012 - 5:27 pm ICT by IANS  

New Delhi, Sep 12 (IANS) India’s industrial production grew in July, reversing the contraction in June, but at a marginal 0.1 percent from a year earlier, government data showed Wednesday.

According to data released by the Central Statistical Office (CSO), the meagre growth over the corresponding month of the previous year was due to poor show by manufacturing, mining and capital goods sectors.

The manufacturing output, which has a 75.5 percent weight in the index of industrial production (IIP), fell 0.2 percent from a year earlier in July, after falling 3.0 percent in June.

The sector is facing weak demand in both foreign and domestic markets with annual merchandise exports having fallen in four of the last five months.

Mining output fell 0.7 percent as against a growth of 0.7 percent in the like month a year ago.

The capital goods production, a key investment indicator, was also down 5 percent in July against a 13.7 percent contraction in the corresponding month a year ago.

The output of capital goods contracted in April-July period by 16.8 percent as against a growth of 8.2 percent in 2011-12.

However, electricity production grew by 2.8 percent.

Growth was also witnessed in basic goods (1.5 percent), consumer durables (1.4 percent) and consumer non-durables (0.1 percent).

Analysts said the data pointed to “strucutural weakness” in the economy amid falling exports and added pressure on the government to take urgent policy initiatives to beat the slowdown.

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