Industrial production grew by just 1.8 percent year-on-year in December 2011 due to contraction in mining and capital goods sectors and a lower manufacturing sector growth.
Factory output growth, as measured by the Index of Industrial Production (IIP), was at 8.1 percent in December 2010.
Output of the manufacturing sector, which constitutes over 75 percent of the index, rose at a lower rate of 1.8 percent in December, compared to a growth of 8.7 percent in the same month of 2010, according to the official data released on Feb 10.
Besides, capital goods sector witnessed a contraction of 16.5 percent, against a growth of 20.2 percent in the same month in 2010.
Mining output too contracted by 3.7 percent in December, against 5.9 percent growth in the year ago period.
However, power generation witnessed a good growth of 9.1 percent in December 2011, compared to 5.9 percent in the year ago period.
During the month, 15 out of 22 industry groups witnessed a positive growth.
During the month output of basic goods went up by 4 percent, against 7.8 percent in the year ago period. However, intermediate goods witnessed a contraction of 2.8 percent, against 8.1 percent growth in December 2010.
During the April-December 2011, the IIP growth stood at 3.6 percent, against 8.3 percent in corresponding period a year ago.
Besides, the IIP figure for November, 2011, has been revised to 5.94 percent from the provisional estimates of 5.9 percent.
Commenting on the IIP figures, Planning Commission Deputy Chairman Montek Singh Ahluwalia said that the numbers are expected to bottom out in the third quarter and revive in the January-March period.
