IIP Dipped in June 2010

After eight months of double-digit year-on-year increases in the official index of industrial production (IIP), India's industrial growth dropped to 7.1% in June 2010. The base effect was held responsible for the dip. The growth rate of the earlier months was on lower bases. In the month of June 2009, the IIP had shown 8.3%. growth. The growth rates for capital goods and consumer durables which reflect investment activity and spending confidence among households was 9.7 per cent and 27.4 per cent in June 2010 compared with the June 2009 levels of 13.4 per cent and 16.2 per cent respectively. The three major constituents of the IIP recorded lower year-on-year increases for June - manufacturing (7.3 per cent versus 8 per cent), mining (9.5 versus 14.2) and electricity (3.5 versus 8).