NEW DELHI (Commodity Online): India’s index of industrial production has risen 5.95% in November on a year-on-year basis while a cumulative growth of 3.8% has been recorded between April to November of FY 2011-12.
Manufacturing output expanded 6.6% Y-oY while mining index fell 4.4% and electricity production climbed 14.6%.
Seventeen of the 22 industry groups in the manufacturing sector have shown positive growth during the month of November 2011 as compared to the corresponding month of the previous year.
The industry group ‘Publishing, printing & reproduction of recorded media’ has shown the highest growth of 69.1%, followed by 41.8% in ‘Medical, precision & optical instruments, watches and clocks’ and 29.3% in ‘Food products and beverages’. On the other hand, the industry group ‘Electrical machinery & apparatusn.e.c.’ has shown a negative growth of 38.7% followed by 8.6% in ‘Furniture; manufacturing n.e.c.’ and 6.4% in ‘Office, accounting & computer machinery’.
The rebound in the Index of Industrial Production in November 2011 after the previous month’s decline demonstrates that industrial growth is not on a downward spiral, providing relief to industry, according to Mr Chandrajit Banerjee, Director General of Confederation of Indian Industry.
The growth recovery has been driven entirely by the consumer goods sector with both durables and non-durables showing strong growth. However, CII remains concerned that the performance of critical sectors in the capital goods and intermediate goods groups has been poor. Without a recovery in these sectors, the investment momentum will remain subdued, without which a sustained recovery will not be possible. Some measures to fast-track large projects in the infrastructure area could lift business sentiment and drive a recovery in the coming year, said Mr, Chandrajit Banerjee.
