IIP growth slows to 8.5% in Oct

A slowdown in manufacturing, coupled with a plunge in the mining sector, pulled down industrial growth to 8.5% in October 2005 as compared to a strong 10.6% growth in October 2004.

The manufacturing sector grew at a slower rate of 9.6% in October 2005 as against 11.9% in October 2004. Mining sector witnessed a negative growth of 1.8% in October 2005 when compared with a respectable 6.2% growth in October 2004.

The index of industrial production (IIP) would have been lower but for the improved performance in the electricity sector, which posted a 7.4% growth in October 2005 as against 3.5% in the same month last fiscal.

During the first seven months of the current fiscal, the IIP rose by a slower 8.4% as compared to 8.7% between April-October 2004, according to official data released today.