ASSOCHAM reacts to IIP figure

New Delhi : Industry body ASSOCHAM said the industrial output showing growth in November in wake of the prevailing global economic scenario together with a tightened monetary policy shows resilience of the industry.
“The growth is primarily driven by the consumer durables and non-durables, indicating a strong growth in demand, while growth in key industries like mining, manufacturing and capital goods have been below expectation,” said D.S. Rawat, secretary general of The Associated Chambers of Commerce and Industry of India (ASSOCHAM).
“The lackluster performance of the capital goods and intermediate goods sector is mainly due to slow inflow of investments which has also compelled the Reserve Bank of India (RBI) to take a hard monetary stand,” said Rawat.
Riding on the manufacturing industry as well as consumer durables and non-durables, the industrial production in India in November 2011 has risen by 5.9 percent, latest government data released on Thursday said.
The Quick Estimates of Index of Industrial Production (IIP) with base 2004-05 for the month of November 2011 have been released by the Central Statistics Office of the Ministry of Statistics and Programme Implementation.
The General Index for the month of November 2011 stands at 167.4, which is 5.9pc higher as compared to the level in the month of November 2010.
The cumulative growth for the period April-November 2011-12 stands at 3.8pc over the corresponding period of the previous year.
The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of November 2011 stand at 127.6, 177.8 and 145.6 respectively, with the corresponding growth rates of (-) 4.4pc , 6.6pc and 14.6pc as compared to November 2010.
The cumulative growth in the three sectors during April-November, 2011-12 over the corresponding period of 2010-11 has been (-)2.5pc , 4.1pc and 9.5pc respectively, which moved the overall growth in the General Index to 3.8pc .
In terms of industries, 17 out of the 22 industry groups (as per 2-digit NIC-2004) in the manufacturing sector have shown positive growth during the month of November 2011 as compared to the corresponding month of the previous year.
The industry group ‘Publishing, printing and reproduction of recorded media’ has shown the highest growth of 69.1pc , followed by 41.8pc in ‘Medical, precision and optical instruments, watches and clocks’ and 29.3pc in ‘Food products and beverages’.
On the other hand, the industry group ‘Electrical machinery and apparatus n.e.c.’ has shown a negative growth of 38.7pc followed by 8.6pc in ‘Furniture; manufacturing n.e.c.’ and 6.4pc in ‘Office, accounting and computer machinery’.
As per Use-based classification, the growth rates in November 2011 over November 2010 are 6.3pc in Basic goods, (-) 4.6pc in Capital goods and 0.2pc in Intermediate goods. The Consumer durables and Consumer non-durables have recorded growth of 11.2pc and 14.8pc respectively, with the overall growth in Consumer goods being 13.1pc .