India's Index of Industrial Production, or IIP, maintained its double-digit growth rate for the eighth month in a row in May, backed by a significant growth from almost all sectors, particularly capital goods and consumer durables.
Data released Monday by the Central Statistical Organization of the Ministry of Statistics and Programme Implementation showed the IIP for May had a growth rate of 11.5%, surging from 2.1% for the corresponding month last year, and lower than the growth rate for April.
The cumulative index of industrial production for the first two months of this fiscal surged to 14% from the 1.6% in the corresponding period last fiscal.
The data lowered the estimated growth rate for April to 16.52% from the earlier 17.6%.
During May, the growth rate of the manufacturing sector, with a weightage of 79.4%, surged by 12.3%, compared to the 1.8% in May of the preceding year. The power sector rose by 6.4% from the 3% for the corresponding month last year. The mining sector grew by 8.7%, compared to the growth of 3.4% in May last year.
Fifteen out of the 17 industry groups showed a positive growth in May, compared to the corresponding month of the preceding year. The industry groups consisting of 'Metal Products and Parts, except Machinery and Equipment' showed the highest growth of 39.8%, followed by 27.6% in 'Other Manufacturing Industries' and 26.9% in 'Jute and Other Vegetable Fibre Textiles (except cotton). But 'Furniture and Fixture' had a negative growth of 5.7%, followed by 3% in 'Beverages, Tobacco and Related Products."
As per the user-based classification, the capital goods sector in May had a positive growth of 34.3%, compared to the negative growth of 3.6% in May last year.
The IIP said that in May, basic goods and intermediate goods grew by 7.9% and 10.2% respectively, compared to the 3.8% and 6.6% respectively for the corresponding month last year.
In May, the growth rate of the consumer durables sector significantly increased to 23.7% from the 13.2% in May of the preceding year, whereas non-durables rose by 2.4%, compared to a negative growth of 5.5% for the same month last year. As such, the growth rate of overall consumer goods was 8.2%, compared to a negative growth of 1.1% of last May.
Along with the Quick Estimates of IIP for May, indices for April had the first revision, while those for February had the second and final revision, in the light of the updated data.
During May, the growth rate in six core-infrastructure industries, having a combined weightage of 26.7% in the IIP, was 5%, up from the 3.2% last year, mainly driven by growth in the production of crude oil, petroleum, electricity.
Finance Secretary Ashok Chawla said: "One should not expect industrial output to be abnormally high", adding that FY11 will continue to witness double digit IIP growth."
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