Industrial production slides to 4.2% in October

The index of industrial production (IIP) contracted 4.2% for the month of October. The IIP declined by 1.2 per cent and slumped to three years low following a sharp decline the sectors of capital, consumer and manufacturing. In October 2011, the IIP was at 4.74 per cent.

The manufacturing sector with weights 75 per cent of the index was contracted at 7.6 per cent, the capital goods fell by 2.3 per cent, and mining and electricity sectors grew 5.3 per cent and 13.3 per cent respectively.

However, the retail inflation was decreased to 4.3 per cent in November from 5.52 per cent in preceding month. The food inflation declined to 3.1 per cent in November from 5.59 per cent in previous month.

The fall in the industrial production index shows that there is need for a big push to the economic reforms to boost the growth rate of Indian economy.