Industrial production or the IIP grew at a much faster-than-expected 6.8% year-on-year in January 2012 as compared to 7.5% in same month in 2011. December's provisional increase of IIP was at 1.8%.
Output of the manufacturing sector, which constitutes over 75% of the index, rose at a rate of 8.5%. Capital goods growth stays lower at 1.5% while basic goods growth increased to 1.6%. (Also Read: Rate cut possible only in April: Experts)
Mining sector growth has lowered to 2.7% and the electricity sector growth was at 3.2%. Consumer durables goods growth was at a negative (-) 6.8%.
During April-January, industrial production expanded 4.0%. Output grew 7.8% in the 2010-11 fiscal year that ended in March, below the 10.5% clocked the year before.
A survey of 25 economists last week had showed they expected IIP to have grown by a median 2.1% in January from a year earlier, compared with 1.8% in the previous month.
Forecasts in the poll ranged from a decline of 1.2% to an increase of 4.6%, with only one contributor expecting a contraction.
Industrial production growth has been slowing for the past two years on a sequential basis, the 3-month moving average of the data has shown.
In December 2011, the Industrial production grew by just 1.8% year-on-year due to contraction in mining and capital goods sectors and a lower manufacturing sector growth.
Factory output growth was at 8.1% in December 2010.