August IIP at 1.3% vs 10.9% a year ago

[B. Karthick]

The index of industrial production (IIP) rose by just 1.3 per cent in
August 2008 as against 10.9 per cent during the corresponding period
last year.


According to Industry ministry officials, this is because of the
dismal performance by the manufacturing sector. The sector grew by
only 1.1 per cent during last August whereas its growth rate was 10.7
per cent in August 2007.

According to government sources, electricity production grew by just
0.8 per cent during August 2008 as against 9.2 per cent in August
2007. Mining production, which witnessed a rise of 14.7 per cent rise
in August 2007 barely rose to 4 per cent this August.

The cumulative increase in industrial production increased by 4.9 per
cent during April-August 2008 as against 10 per cent in the
corresponding period last year.

B.Karthick
Research Analyst.