Industrial output growth slows to 3.6% in February

Industrial growth slowed to 3.6 pc in February, 2011, compared to 15.1 pc expansion in the year-ago period, dragged down by poor performance of manufacturing and mining sectors. However, overall 15 out of 17 industry groups achieved positive growth in the second month of 2011. Growth in factory output in February, as measured in terms of the Index of Industrial Production (IIP), was lower than the 3.95 percent expansion (revised upward from 3.7 percent) witnessed in the previous month.
Industrial output growth during the April-February period this fiscal stood at 7.8 percent vis-a-vis the corresponding period of the previous year. In contrast, industrial output had expanded by 10 percent year-on-year in April-February, 2009-10, official data released in New Delhi on Monday shows. In February, manufacturing growth plummeted to 3.5 percent from 16.1 percent a year ago. The capital goods sector contracted by 18.4 percent in the month under review. The sector had posted a robust growth of 46.7 percent in February, 2010. However, production in the consumer non-durables segment went up by 6.1 percent during the month under review. It had contracted by 0.8 percent in the same period a year ago.