Industrial output shrinks for first time in 15 years

India''s industrial output slipped into the negative territory for the first time since 1993. The industrial production growth in October fell into the negative territory, indicating a sharper slowdown in the economy. The Index of Industrial Production in October posted a negative growth of 0.4 per cent, from positive growth of 5.45 per cent in September and 12.2 per cent in October 2007. The manufacturing output, which accounts for 80 per cent of the index, in October is down 1.2 per cent in the negative as against 13.8 per cent positive growth a year earlier.

Earlier this month, the government sought to rescue manufacturers by announcing an across-the-board (barring petroleum goods) 4 per cent cut in excise duty. Electricity sector grew by 4.4 per cent during the month, bettering 4.2 per cent output of the year-ago period, while mining sector grew by a slower 2.8 per cent against 5.1 per cent in the previous year''s comparable period.