Industrial production growth in India hits a 2-year low at 1.9 per cent

Industrial production in the country grew at 1.9 per cent year-on-year in September, hitting a two-year low, against a growth of 3.6 per cent (revised) in the previous month, pulled down by a 2.1-per cent growth in the manufacturing sector.

This is the third successive month in the current fiscal that the growth of industrial production has been declining. The slow pace of growth of manufacturing output, which accounts for 80 per cent of industrial production in India, clearly points to a deceleration in Asia's third-largest economy.

The index of industrial production (IIP) stood at 163.2, down 1.9 per cent from its level in September 2010, quick estimates provided by the Central Statistical Office (CSO) showed.

The cumulative growth of industrial production for April-September 2011-12 period stood at 5 per cent compared to the same period of the previous year.

Production indices for the mining, manufacturing and electricity sectors for September 2011 stood at 111.0, 175.7 and 144.1, respectively, with the corresponding growth rates of (-) 5.6 per cent, 2.1 per cent and 9.0 per cent year-on-year.

Cumulative production in the three sectors grew at (-) 1.0 per cent, 5.4 per cent and 9.4 per cent, respectively, which moved the overall growth in the IIP to 5.0 per cent year-on-year during April-September 2011-12.