India's ind production falls by 3.5 pc in March; in FY 2011-12 up 2.8 pc

New Delhi, May 11 (PTI) Indicating a sharp slowdown in the economy, India's industrial production declined by 3.5 per cent in March, mainly on account of contraction in manufacturing and mining output. Growth in factory output, as measured by the Index of Industrial Production (IIP), was higher at 9.4 per cent in March last year. The overall industrial growth during fiscal 2011-12 ended March 2012 has been a dismal 2.8 per cent as compared to 8.2 per cent in the previous fiscal, due to degrowth in mining at 2 per cent and slower 2.9 per cent growth in manufacturing, as per latest government data released here today. Output of the manufacturing sector, which constitutes over 75 per cent of the index, contracted by 4.4 per cent in March, compared to a growth of 11 per cent in March 2011. Mining output too declined by 1.3 per cent in March, as against a growth of 0.4 per cent in the same month a year ago. Power generation witnessed a growth of 2.7 per cent in March, compared to 7.2 per cent in the year-ago period. In terms of industries, ten out of twenty two industry groups in the manufacturing sector have shown positive growth during the month of March as compared to the same month a year-ago. The output of basic goods went up by just 1.1 per cent in March, as against 6.4 per cent in the same month last year. But Capital goods fell by -21.3 per cent in March, compared to a growth of 14.5 per cent in March 2011. Intermediate goods witnessed a contraction of 2.1 per cent as against 3 per cent growth in March last year. Consumer goods saw growth at 0.7 per cent compared to 13.2 per cent a year earlier. Consumer durables was up by 0.2 per cent and non-durables and 1.0 per cent against growths of 14.9 per cent and 11.9 per cent respectively in the year ago period. During fiscal 2011-12, while mining output was down by 2.0 per cent, manufacturing went up by 2.9 per cent and power generation by 8.2 per cent. Mining had gone up by 5.2 per cent in the previous fiscal, manufacturing by 8.9 per cent and power generation by 5.5 per cent. By use based classification, basic goods output went up by 5.5 per cent during 2011-12 (6.0 per cent in previous fiscal), capital goods fell by 4.1 per cent (14.8 per cent growth in previous fiscal), intermediate goods fell by 1.0 per cent (compared to 7.4 per cent growth), and consumer goods went up by 4.4 per cent (compared to 8.5 per cent in 2010-11). Consumer durables went up by 2.5 per cent and non-durables by 5.9 per cent compared to 14.2 and 4.2 per cent growths respectively in previous fiscal. PTI