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Industrial output growth slows to 7.8% in 2010-11

New Delhi: Poor performance of the manufacturing and mining sectors pulled down overall growth of industry to 7.8 percent in 2010-11 from 10.5 percent in the previous fiscal.

Factory output in March, as measured in terms of the Index of Industrial Production (IIP) released Thursday, also witnessed lower growth of 7.3 percent, compared to 15.5 percent expansion in the same month a year ago.

However, the performance in March was an improvement compared to 3.6 percent growth registered in February this year.

The manufacturing sector, which accounts for almost 80 percent of the index, saw its annual growth fall to 8.1 percent in 2010-11 from 11 percent in the previous fiscal.

The sector has also shown poor performance in the month of March, with meagre growth of 7.9 percent, compared 16.4 percent expansion in the same month last year.

The mining sector also saw a decline in growth to 5.9 percent in 2010-11 from 9.9 percent in the previous fiscal. For March, the sector’s growth was a mere 0.2 percent, compared to 12.3 percent in the same month of 2009-10.

The capital goods segment was among the most affected as it grew by just 9.3 percent in 2010-11, compared to a robust 20.9 percent in the previous fiscal.

In March this year, the growth in capital goods production slowed to 12.9 percent from 36 percent in the same month of 2010.

During the last fiscal, growth of the electricity sector slowed to 5.6 percent as against 6 percent in 2009-10.

During March, the sector reported a growth of 7.2 percent, compared to 8.3 percent in the corresponding month of 2009-10.

Overall, 13 out of 17 industry groups achieved positive growth in March this year.

Production in the consumer non-durables segment went up by 2.2 percent during the 2010-11 fiscal, as against 0.4 percent in 2009-10.

The consumer durables segment grew by 20.9 percent in 2010-11, down from 24.6 percent expansion in 2009-10.

Overall, consumer goods output reported a rise of 7.5 percent last fiscal, as against 6.2 percent in 2009-10.

Intermediate goods reported a rise of 8.8 percent during 2010-11, down from 13.6 percent in the previous fiscal.

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