Industrial production plummets as inflation soars (Lead)July 11th, 2008 - 2:54 pm ICT by IANS
New Delhi, July 11 (IANS) India’s industrial production slumped to 3.8 percent in May this fiscal, against a growth of 10.6 percent in the corresponding period last year, official figures released Friday said. This comes at a time when the government is grappling with spiralling inflation, which zoomed to 11.89 percent for the week ended June 28, compared to 11.63 percent the week before.
The inflation rate was only 4.42 percent on June 30 last year.
The quick estimates of industrial production (IIP) released Friday by the Central Statistical Organisation (CSO) showed that cumulative growth in industrial production declined to five percent in April-May 2008-09, from 10.9 percent in the last fiscal.
The electricity sector registered only a two percent growth in May this year against 9.4 percent during the corresponding period last fiscal.
The growth in manufacturing sector dipped to 3.9 percent against 11.3 percent in May 2007-08.
The only sector that registered an increase in growth rate is mining, which logged a 5.2 percent growth in this May, compared to 3.8 percent in May 2007-08.