The signs of Indian economy slowing down are becoming more visible as index of industrial production (IIP) fell to 1.9 per cent in September compared to 6.1 per cent in the same month last year. The manufacturing sector index grew by 2.1 per cent in September, compared to 6.9 per cent in the same month last year. Mining output fell by 5.6 per cent in September this year, as against a growth of 4.3 per cent in the same month last year. The capital goods segment contracted by 6.8 per cent in September in comparison to a growth of 7.2 per cent in the same last year. The intermediate goods grew by 1.5 per cent during the month compared to 4.6 per cent in September, 2010. The consumer non-durables output contracted by 1.3 per cent during the month in comparison to a expansion of 5.8 per cent in the corresponding month of the previous year.
Growth in industrial output in the first half of the financial year (April-Sep) slowed down to 5 per cent from 8.2 per cent in the last year. In terms of industries, fifteen (15) out of the twenty two (22) industry groups in the manufacturing sector have shown positive growth during the month of September 2011 as compared to the corresponding month of the previous year. The industry group ‘Radio, TV and communication equipment & apparatus’ has shown the highest growth of 25.0%, followed by 19.0% in ‘Other transport equipment’ and 16.6% in ‘Office, accounting & computing machinery’. On the other hand, the industry group ‘Electrical machinery & apparatus n.e.c.’ has shown a negative growth of 27.7% followed by 8.2% in ‘Furniture; manufacturing n.e.c.’ and 8.1% in ‘Wearing apparel; dressing and dyeing of fur’.
Some of the important items of capital goods showing high negative growth during the current month and thus contributing to the low growth of the overall index for the month include ‘Cement Machinery’ [(-) 70.4%], ‘Sugar Machinery’ [(-) 63.8%], ‘Cable, Rubber Insulated’ [(-) 45.3%] and ‘Relays, Fuses and Switchgears’ [(-) 30.0%]. However, some important items of the capital goods are also showing significant growth. These are: ‘Conductor, Aluminium’ (45.0%), ‘Earth Moving Machinery’ (44.9%), ‘X-ray equipment’ (35.0%) and ‘Tractors’ (30.4%).
The other important items showing growth during the month are: ‘Fruit Pulp’ (90.6%), ‘Paraxylene’ (64.0%), ‘Stainless/ alloy steel’ (63.3%), ‘Woollen Carpets’ (61.9%), ‘Linear low density polyethylene’ (58.9%), ‘Tanned or Chrome Skins and Leathers’ (58.1%), ‘Steel Castings’ (48.0%), ‘Petroleum Coke’ (44.6%), ‘Scooter and Mopeds’ (33.0%), ‘Marble Tiles/Slabs’ (32.3%), ‘Polythene Bags including Hdpe & Ldpe Bags’ (31.5%) and ‘Telephone Instruments Including Mobile Phone And Accessories’ (31.1%).