Industrial output in March up 7.3%; beats expectations
12 May 2011
India's industrial output in March rose sharply by 7.3 per cent from a year earlier, beating most expectations, reveals the latest data released by the government today.
The performance in March was an improvement compared to 3.6-per cent growth registered in February.
However, for the fiscal 2010-11, growth in the index of industrial production (IIP) slowed to 7.8 per cent from 10.5 per cent in 2009-10. The March IIP is also significantly lower than last year's; blamed on a high base effect.
Poor performance of the manufacturing and mining sectors pulled down the overall growth of industry compared to the previous fiscal. Factory output in March, as measured in terms of the IIP, also witnessed lower growth of 7.3 per cent compared with 15.5 per cent expansion in the same month a year ago.
The manufacturing sector, which accounts for almost 80 per cent of the index, saw a fall in its annual growth to 8.1 per cent in 2010-11 from 11 per cent in the previous fiscal.
The sector has also shown poor performance in March, with a meagre growth of 7.9 per cent, compared with 16.4 per cent expansion in the same month last year.