Infra sector output bounces back in Nov; IIP to get a boost
After touching five-year low of 0.3 percent in October, growth in key infrastructure output bounced back in November to 6.8 percent, thus brightening prospects for industrial production for the month.
New Delhi: After touching five-year low of 0.3 percent in October, growth in key infrastructure output bounced back in November to 6.8 percent, thus brightening prospects for industrial production for the month.
Riding on a stellar growth in cement, electricity and refinery products, the eight infrastructure sectors which have weightage of 38 percent in the overall Index of Industrial Production (IIP), considerably improved year-on-year as well from 3.7 percent in November 2010.
However, due to lagging performance in the previous months, the April-November growth of the core industries stood at 4.6 percent as against 5.6 percent in the same period last fiscal, according to the data released today.
Except for crude oil, natural gas and fertilisers, all other segments registered healthy growth in November.
The maximum growth was witnessed in cement which expanded by 16.6 percent, while there was a contraction of 4.3 percent in the same period last fiscal.
Electricity and steel output grew by 14.1 percent and 5.1 percent against 3.5 percent and 7.6 percent, respectively, in the same month last year.
Coal and petroleum refinery products growth went up by 4.9 percent and 11.2 percent in November 2011.
However, crude oil and natural gas output contracted by 5.6 percent and 10.1 percent from a positive growth of 17 percent and 5.5 percent, year-on-year, respectively.
CRISIL Chief Economist D K Joshi said, "The rebound in eight infrastructure sectors is likely to have a positive impact on the IIP numbers."
The core sector, in October 2011, registered a dismal growth of 0.3 percent. This slowdown in the industry output was evident from the Gross Domestic Product (GDP) figures.
The economic growth stood at 6.9 percent – the lowest in the past nine quarters -- during the July-September quarter.
The economic growth in the first half of the current fiscal slowed down to 7.3 percent from 8.6 percent in the year ago period.
India's industrial production contracted by 5.1 percent in October year-on-year.