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Home arrow Business News arrow Manufacturing sectors led by capital goods boost IIP figures for Jan 2010
Manufacturing sectors led by capital goods boost IIP figures for Jan 2010 Print E-mail
Written by Ganesh   
Sunday, 14 March 2010
New Delhi: The Quick Estimates of Index of Industrial Production for the month of January 2010 have been released by the Central Statistical Organisation of the Ministry of Statistics and Programme Implementation. The General Index stands at 332.3, which is 16.7% higher as compared to the level in the month of January 2009.

"The strong figures in industrial production for the month of January 2010 has been primarily contributed by manufacturing sectors with capital goods and consumer durables leading the higher growth trajectory of industrial output," said Chandrajit Banerjee, Director General, CII.

The cumulative growth for the period April-January 2009-10 stands at 9.6% over the corresponding period of the previous year.

In terms of industries, as many as fourteen (14) out of the seventeen (17) industry groups (as per 2-digit NIC-1987) have shown positive growth during the month of January 2010 as compared to the corresponding month of the previous year. The industry group ‘Transport Equipment and Parts’ have shown the highest growth of 57.6%, followed by 45.9% in ‘Machinery and Equipment other than Transport Equipment’ and 38.6% in ‘Metal Products and Parts, except Machinery and Equipment’.

The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of January 2010 stand at 215.6, 359.5, and 240.6 respectively, with the corresponding growth rates of 14.6%, 17.9% and 5.6% as compared to January 2009. The cumulative growth during April-December, 2009-10 over the corresponding period of 2008-09 in the three sectors have been 9.3%, 9.9% and 5.7% respectively, which moved the overall growth in the General Index to 9.6%.

"There is a strong base effect to the growth numbers due to poor performance in January 2009, it is clear that industrial recovery has been strengthening due to the positive impact of stimulus packages both on fiscal and monetary front," Banerjee said.

As per Use-based classification, the Sectoral growth rates in January 2010 over January 2009 are 10.7% in Basic goods, 56.2% in Capital goods and 21.3% in Intermediate goods. The Consumer durables and Consumer non-durables have recorded growth of 31.6% and (-)3.1% respectively, with the overall growth in Consumer goods being 4.2%.

"The partial rollback of fiscal stimulus proposed in the current budget may not significantly impact the robustness of industrial recovery. However, it is also worth noting that the performance of some of the labour intensive sectors such as the jute and leather sectors are still worrisome. Any increase in policy rates at this time will be counter productive to industrial recovery where a significant portion of the sector are SMEs," he added.

However, the industry group ‘Jute and Other Vegetable Fibre Textiles (except cotton)’ have shown a negative growth of 91.0% followed by 4.0% in ‘Food Products’ and 2.2% in ‘Leather and Leather & Fur Products’.

 
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