IIP in September at 4.8% against 1.4% in Aug

The industrial growth in September was at 4.8% against the 13-year low of 1.4% in August 2008.

The index of six infrastructure industries, that have a combined weight of 26.7% in the IIP, posted a growth of 5.1% for September. Electricity, which has a weight of 10.17% in the IIP, recorded 4.4% growth rate for September, up sharply from 0.8% in August.

“Although substantial addition to the generation capacity may not be in the offing, I expect growth rate for electricity generation to remain 4-6% for the rest of the year,” Reliance Energy Trading CEO Mahendra Kumar Garg said.

Central excise collection for September registered a 3.8% drop from the corresponding month last year. The direct tax numbers for October also shows that real estate, infrastructure, cement, automobiles, power, textiles and downstream oil companies are witnessing moderation in growth in comparison to corresponding period last year.


The only consolation for the revenue department has been a good growth in service tax collections. The service tax collected in the first seven months of this fiscal has been Rs 29,867 crore in comparison to Rs 23,204 crore in the same period last year

Industrial production, which accounts for about a fifth of gross domestic product and is mostly geared to meet domestic demand, rose 8.1 per cent in 2007/08.