Press Information Bureau

Government of India

Ministry of Commerce & Industry

05-September-2012 16:37 IST

UNIDO Findings on Industrial Growth

According to a Report of United Nations Industrial Development Organization (UNIDO) the world manufacturing output rose by 5.5. per cent in the third quarter of 2011, compared to the same period of 2010. This growth is mainly attributed to developing countries, whose manufacturing output increased by 13 per cent.

There has been some moderation in the growth rate of industrial production as measured in the Index of Industrial Production (IIP). The IIP growth rate in the fourth quarter (Jan-March) 2011-12 was 0.6% as compared to the growth rate registered of 7.9% in the corresponding quarter of previous year (Jan-March) 2010-11.

The major sectors that have adversely affected IIP growth are manufacturing and mining. Major reasons for the decline in manufacturing include global economic uncertainty, sluggish domestic demand, hardening of interest rates etc., whereas regulatory and environmental issues, court orders, decline in international demand for metallic minerals etc. Are affecting production in the mining sector.

This information was given by the Minister of State of Commerce and Industry, Shri Jyotiraditya M. Scindia in a written reply in the Rajya Sabha today.

DS/GK

Regulatory and environmental constraints dampen industrial production, reducing manufacturing and mining growth amid weak global demand. Domestic industrial growth moderated with lower IIP growth in the relevant quarter, primarily due to declines in manufacturing and mining; manufacturing was affected by global uncertainty, weak domestic demand and higher interest rates, while mining was constrained by regulatory and environmental compliance, court orders and reduced international demand for metallic minerals.