IIP nosedives to 1.6% in December 2010

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Agencies: New Delhi, Feb 11 2011, 10:54 IST

Tags: India Industrial Output | IIP Data December

India's industrial output in December rose a slower-than-expected 1.6 per cent from a year earlier, government data showed on Friday.

Manufacturing output, which constitutes about 80 per cent of the industrial production, rose an annual 1 per cent, the federal statistics office said in a statement. Industrial output grew 10.4 per cent in the 2009/10 financial year (April-March), faster than the 2.8 per cent clocked in the previous fiscal year.

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rohit chandavarker | 11-Feb-2011Reply | Forward

The decline in IIP was expected & had been pointed out in these columns earlier but the scale was unknown. Wonder what the ace economist Montek Ahluwalia has to say now.He made us believe that all was hunky dory inspite of dark clouds visible on the horizon months back as expressed by me. The decline will continue & with the Govt entangled in a maze of corruption scandals badly needed reform is out of the question. Oil prices are stubbornly high & an unstable Mid East with its political troubles, will remain high.Foreign investment is declining & with no visible efforts from the Govt, this is unlikely to reverse in a hurry. The Budget will likely be a damp squib given the enormous pressures the Govt is under.Food prices decline on a weekly basis is an optical illusion & higher agri production will not be able to pull up overall growth. Hence it is doubtful if a higher than 7% growth is possible, notwithstanding the utterances of Montek.