Manufacturing sector slumps1.5% from a year earlier
After showing 2.5% growth in August, industrial output declined by 0.4% in September as manufacturing activity showed a decline. This has doused hopes of a revival in the economy and may force the Reserve Bank of India (RBI) to review its policy rates earlier than the fourth quarter credit policy.
The indices of industrial production for mining, manufacturing and electricity sectors showed growth of 5.5%, (-)1.5% and 3.9%, according to the data released by the Ministry of Statistics and Programme Implementation today.
Manufacturing alone constitutes about 76% of industrial production.
The Index of Industrial Production (IIP) figures for August were also revised from 2.7% to 2.2%. The cumulative growth for the period April-September 2012-13 over the corresponding period of the previous year stands at 0.1%.
As per use-based classification, the growth rates in September 2012 over September 2011 are 3.5% in Basic goods, (-) 12.2% in capital goods and 1.8% in Intermediate goods.
Consumer durables and consumer non-durables have recorded growth of (-) 1.7% and 1.1% respectively, with the overall growth in consumer goods being (-) 0.3%, the statement said.
Reserve Bank of India today said it there is no need to explain the monetary policy and it stands by monetary policy statement.