Image via WikipediaIndia's industrial production grew at a slow 5.6% in May, the pace dipping below 6.3% expansion seen in the previous month, primarily due to slow growth in the manufacturing sector according to official data released Tuesday. The index of industrial production (IIP) rose 8.5% in May 2010.
The data has been computed by keeping 2004-05 as the base year. The earlier series had 1993-94 as the base.
Manufacturing, which constitutes about 80% of the IIP, grew at a rate of 5.6% in May compared to 8.9% last year, while mining output up by 1.4% as against 7.9% in April 2010, according to the statement from the ministry of statistics and programme implementation.
Policymakers have been expressing confidence that industrial output will swing back from the lows it hit in the past few months, but the second successive decline in factory production levels will certainly cast doubts over the overall gross domestic product growth target of 8.5%.
Electricity generation, however increased by a robust 10.3% during the month under review.
Capital goods grew at a sluggish 5.9%, while intermediate products was almost stagnant, the production of which rose by 0.9%.
Consumer goods output rose by 5.4%, while consumer durables production slowed to 5.2% as against a whopping 14.7% in the like month of last year.
In terms of industries, 14 out of the 22 industry groups in the manufacturing sector have shown positive growth during the month.
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