September industrial output growth slows sharply to 4.4%
Industrial output rose 10.4 percent in the 2009/10 financial year (April-March) , faster than the 2.8 percent clocked in the previous fiscal year.
By Agencies |
NEW DELHI: India's industrial output growth slowed sharply in September to 4.4 percent compared with 8.2 percent in the same month of last year, government data showed on Friday. IIP was also lower than the previous month's revised annual growth of 6.92 percent.
The output from factories, mines and utilities in Asia's third-largest economy was well below forecasts by economists, who had expected a rise of around seven percent from a year earlier.
Manufacturing output rose an annual 4.5 percent in September, the federal statistics office said in a statement.
Industrial output rose 10.4 percent in the 2009/10 financial year (April-March) , faster than the 2.8 percent clocked in the previous fiscal year.
The Indian production was also far below rival China's industrial output, which expanded 13.1 percent year-on-year in October, according to figures released this week.
The Indian figures marked the second month in a row that industrial output has disappointed financial markets. Output rose just 5.6 percent year-on-year in August, a sharp decline from a 15.2 percent surge the previous month.
Industrial output had been lifted by government spending and aggressive monetary easing to help shield the economy from the global economic crisis.
But those measures are being unwound by sharp monetary tightening as India's economy has shown signs of bouncing back from the international economic slump.
However, the industrial output data for October will get a statistical boost from the revamped wholesale price index that will show a lower inflation figure.
A senior government official confirmed that there would be an absolute increase in the numbers for industrial production, when it was restated using the new inflation series.
The index of industrial production (IIP) is a volume index. It measures the quantity of goods produced.
The key items of the IIP that are reported in value terms include machinery, machine tools, and ship building, which have a large weight in the index.
The output from factories, mines and utilities in Asia's third-largest economy was well below forecasts by economists, who had expected a rise of around seven percent from a year earlier.
Manufacturing output rose an annual 4.5 percent in September, the federal statistics office said in a statement.
Industrial output rose 10.4 percent in the 2009/10 financial year (April-March) , faster than the 2.8 percent clocked in the previous fiscal year.
The Indian production was also far below rival China's industrial output, which expanded 13.1 percent year-on-year in October, according to figures released this week.
The Indian figures marked the second month in a row that industrial output has disappointed financial markets. Output rose just 5.6 percent year-on-year in August, a sharp decline from a 15.2 percent surge the previous month.
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Industrial output had been lifted by government spending and aggressive monetary easing to help shield the economy from the global economic crisis.
But those measures are being unwound by sharp monetary tightening as India's economy has shown signs of bouncing back from the international economic slump.
However, the industrial output data for October will get a statistical boost from the revamped wholesale price index that will show a lower inflation figure.
A senior government official confirmed that there would be an absolute increase in the numbers for industrial production, when it was restated using the new inflation series.
ADVERTISEMENT
The index of industrial production (IIP) is a volume index. It measures the quantity of goods produced.
The key items of the IIP that are reported in value terms include machinery, machine tools, and ship building, which have a large weight in the index.
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