Industrial growth slowed to 3.7 per cent in January, compared to expansion of 16.8 per cent in the year-ago period, dragged down by the poor performance of the manufacturing sector , particularly capital goods.
However, growth in factory output in January, as measured in terms of the Index of Industrial Production (IIP), was better than the 2.53 per cent expansion (revised upward from 1.6 per cent) witnessed in the previous month.
Industrial output growth during the April-January period this financial year stood at 8.3 per cent vis-a-vis the corresponding period last year. In contrast, industrial output expanded by 9.5 per cent year-on-year in April-January 2009-10, official data released in New Delhi on Friday shows.
In January, manufacturing growth plummeted to 3.3 per cent from 17.9 per cent a year ago. The capital goods sector contracted 18.6 per cent in the month under review. The sector had posted a robust growth of 57.9 per cent in January, 2010.
However, production in the consumer non-durables segment grew 6.9 per cent during the month under review. It had contracted by 7 per cent in the same period a year ago.
Mining growth also plummeted to 1.6 per cent in the month under review from 15.3 per cent in the comparable month of 2010. Electricity generation output rose by 10.5 per cent in January, compared to 5.6 per cent growth in the same month last year.
On the whole, 14 out of 17 industry groups achieved positive growth in the first month of 2011.